1 Reason to Be Very, Very Excited About Rivian Stock Right Now

Key Points

• Many automakers are cutting back on EV investments.

• EV makers like Rivian and Tesla should benefit.

• 10 stocks we like better than Rivian Automotive ›

Some automakers are reining in their investments in electric vehicles (EVs). Sluggish demand and shifting regulatory climates have caused nearly every major automaker to cut investments, delay projects underway, and generally deemphasize the role EVs will play in their upcoming lineups. "It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds," Volvo's CEO explained after it ditched plans to make its lineup 100% electric by 2030.

While it will take some patience, all of this could end up being great news for Rivian (NASDAQ: RIVN), which expects to launch three new EVs in 2026 and 2027.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Rivian's CEO says it "blows my mind" EV investment is falling

In June, General Motors announced that it would invest $4 billion to expand production of gas-powered vehicles. "It blows my mind this is happening, but nonetheless it is," Rivian CEO RJ Scaringe responded, adding that the industry's deprioritization of EVs will end up being "very bad for the U.S. auto industry."

But here's the good news for Rivian investors: Competition will be drastically reduced over the next few years. Rivian's new models will face less direct competition, a situation that could persist for years, given capital investment timelines.

Image source: Getty Images.

How Rivian (and investors) could benefit

Rivian's CEO also thinks the industry shift will end up benefiting his company. "You're going to have a sort of a vacuum of competition," Scaringe said. "The pure-play EV-focused companies Rivian, Tesla, there's not very many, because they're completely and fully focused on electrification, will have the advantage of a pretty thin competitive playing field."

This silver lining will take a long-term perspective for investors to profit. Current market conditions remain difficult. But if buyer sentiment shifts as many forecasts expect it to, pure-play EV makers like Rivian and Tesla will face a hollowed-out competitive field. That adds even more excitement for patient shareholders taking the long view.

Should you invest $1,000 in Rivian Automotive right now?

Before you buy stock in Rivian Automotive, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,113,120!*

Now, it’s worth noting Stock Advisor’s total average return is 1,068% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.