Prediction: Buying Rivian Stock Today Could Set You Up for Life

Tesla (NASDAQ: TSLA) is one of the biggest companies in the world. But Tesla's auto sales have actually been on the decline for several years now. With shares trading at 13.5 times sales, it's clear that the market doesn't just value the company as an EV stock. Instead, Tesla is now arguably a bona fide AI stock, with a valuation premium to match.

What exactly makes Tesla an AI stock? There are many aspects to the equation, but perhaps the biggest reason deals with autonomous driving. Self-driving cars have been promised for decades. But AI is advancing self-driving capabilities faster than ever before. And Tesla has one of the leading positions in a market enabled by autonomous cars: robotaxis.

"We think $8 trillion to $10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," predicts Cathie Wood, the CEO of Ark Invest, a major Tesla shareholder. "That's how quickly AI is going to cause these things to happen."

Tesla's core auto manufacturing business, combined with what could become a $10 trillion robotaxi opportunity, helps justify the company's $1.2 trillion valuation. But there's another EV stock following a similar path to growth yet trading at just 3.2 times sales, with a market cap under $20 billion.

Here's why every growth investor should be taking a closer look at Rivian (NASDAQ: RIVN).

Rivian is ready to follow Tesla's recipe for growth

While Tesla's history is long and complex, the company's meteoric rise comes down to a few key moves. The company first launched the Roadster in 2008, cementing its status as a carmaker of quality (if not expensive) products. In 2017, Tesla launched the Model 3, followed by the Model Y a few years later. Today, those affordable models account for more than 90% of Tesla's auto sales. Finally, in 2024, the company unveiled its Cybercab model, followed up by the launch of its robotaxi service in 2025.

Rivian's growth strategy so far has followed many of the same key pillars. In 2018, the company announced its first vehicles: the R1T pickup truck and R1S SUV. These EVs had luxury price tags, but owners loved the build and quality. Earlier this year, Rivian launched its R2 SUV, its first vehicle priced under $50,000 that will compete directly with Tesla's ultra-successful Model Y. Then in December 2025, the company announced a major strategic pivot that would focus on autonomous cars and AI, clearing the way for it to compete in the nascent robotaxi market.

Image source: Rivian.

Rivian doesn't have the scale, access to capital, or brand name recognition of Tesla. But it's putting the pieces in place to compete in the same markets as Tesla. We received early validation of Rivian's strategy in early 2026 when Uber Technologies agreed to purchase up to 50,000 Rivian R2 SUVs in a $1.25 billion deal aimed at supporting Uber's robotaxi division.

When it comes to attacking the robotaxi market, there are more risks with Rivian stock than with Tesla. But Rivian's deeply discounted valuation provides more than enough margin of safety for investors looking to hit a home run.

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