Where Will Rivian Stock Be in 5 Years?
The market has not been kind to Rivian's (NASDAQ: RIVN) stockholders. Shares in the electric vehicle (EV) maker have lost a whopping 80% of their value as concerns over cash burn and lackluster growth mounted. That said, there could be light at the end of the tunnel. Let's explore what the next five years could look like for this exciting growth stock.
Founded in 2009 and debuting on public markets in 2021, Rivian is an electric vehicle company focusing on the truck, SUV, and crossover segments. The company earned an initial valuation of over $100 billion, netting it roughly $12 billion in cash to fund its expansion. But despite the promising start, Rivian's valuation has since fallen to just $19.5 billion due to operational delays and macroeconomic challenges.
The electric vehicle industry is under pressure from rising interest rates, which hurts consumer spending. Cars are big-ticket items usually purchased with loans, and higher rates make them more expensive. To cope with the softer demand, EV makers have engaged in a price war, putting even more pressure on unprofitable players like Rivian. But while industry challenges have dampened appetite for Rivian's stock, they haven't stopped the company from enjoying massive growth.
Source Fool.com
