Rivian Just Cut Its Most Affordable Models but It's Still a Buy Today
Unlike Tesla (NASDAQ: TSLA) which produces nearly 1 million cars a year and most importantly generates a profit, up-and-coming electric vehicle (EV) makers face an uphill battle to eventually reach profitability. One of those new companies is Rivian (NASDAQ: RIVN), an electric vehicle manufacturer that specializes in sport utility vehicles and trucks.
Since its November 2021 IPO, which was the largest in the U.S. in nearly a decade, Rivian has been forced to learn quickly that the electric vehicle industry is a daunting one that demands results.
The company doesn't plan on generating a profit anytime soon, but it does have one advantage other EV makers don't: a massive pile of cash. Based on its Q2 earnings report, the company is said to have roughly $14.9 billion. That is down from $17 billion in Q1 but it's still more than twice as much cash on hand than rival Lucid (NASDAQ: LCID).
Source Fool.com
