Rivian Has an Ace in the Hole, but Not for Long
Rivian Automotive (NASDAQ: RIVN) stock has been under pressure since the company went public in November 2021. Part of that pressure isn't even Rivian's fault. After surging to a peak market cap of -- wait for it -- $153.3 billion, there was nowhere for the stock to go but down, given that the company hadn't even begun producing vehicles.
But it didn't take long for Rivian to use the gobs of cash it raised from its initial public offering (IPO) to start cranking vehicles off the assembly line.
Rivian stock may always carry the tainted reputation of a burst bubble. But behind the stock blow-up is a real company producing actual results. And now that Rivian's market cap is a much more reasonable $15 billion, it's easier for the company to grow into a higher valuation as it scales production.
Source Fool.com
