Think It's Too Late to Buy Rivian? Here's the Biggest Reason Why There's Still Time.

Source The Motley Fool

Rivian Automotive (NASDAQ: RIVN) stock hasn't performed well so far in 2025, losing around 15% of its value. The recent dip has caused the company's market capitalization to fall under the $12 billion mark. Meanwhile, competitors like Tesla enjoy a market value of nearly $1 trillion.

Still, if you think it's too late to buy into Rivian, think again. In fact, there's a huge catalyst waiting just around the corner for this promising EV stock.

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 »

1 Reason it's not too late to buy Rivian stock

It takes a long time to bring a vehicle to market. Many years must be spent designing the vehicle. And many more years are often spent ramping up the necessary manufacturing facilities, passing the required regulatory barriers, and marketing the brand to prospective buyers.

For established automakers, this timeline is shortened due to existing brand awareness and production capabilities. But for a scrappy upstart like Rivian with only a few models in its lineup, getting new models on the road requires a herculean effort.

This extended timeline to bring new models to market has caused many EV producers to fail in the past. That's because while these models are waiting to hit the roads, the company is typically burning a lot of cash with minimal sales to offset that cash burn. This makes a company dependent on outside capital to survive. But if survival can be maintained, sales can hit an incredible inflection point once new models start to ship to customers.

Rivian is on the verge of one of those inflection points. In the first half of 2026, management expects to begin shipments of is R2 SUV, a mass market model priced at just $45,000. Its R3 and R3X variants -- models that are expected to be even cheaper -- should reach customers in the quarters to follow.

That means by the end of 2026, Rivian could more than double its vehicle lineup with three new affordable models that are accessible to the masses. As long as you're willing to stay patient, it's far from too late to invest in Rivian.

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

Before you buy stock in Rivian Automotive, consider this:

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*Stock Advisor returns as of March 3, 2025

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

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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