Up 15% year-to-date, Rivian (NASDAQ: RIVN) stock is in recovery mode after its disastrous performance in 2022. But investors should still tread with caution. The company's poor margins and massive losses could position it for long-term weakness in an increasingly challenging industry. 

Founded in 2009, Rivian is an electric automaker focusing on trucks and SUVs. The company hit public markets in late 2021, a time of low interest rates and what, in hindsight, looks like a tech bubble. Shares were valued at $78 per share, giving Rivian an eye-watering market cap of over $66 billion on its first day of trading --- despite the company having practically no profits or revenue at the time. 

The irrational exuberance didn't last. And Rivian's early investors were soon hit with a dose of reality as the Federal Reserve began its tightening cycle. 

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Source Fool.com