Should You Buy Rivian While It's Below $12?

Rivian Automotive (NASDAQ: RIVN) stock hasn't been spared from the tariff-inspired market crash. The electric vehicle (EV) company doesn't manufacture overseas, but it still participates in a global supply chain and is reliant on a strong U.S. consumer economy.

The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 each hit 52-week lows as the market panicked over President Donald Trump's global tariff plans. Rivian stock plunged as well, punctuating a 20% drop over the last three months.

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That could be a buying opportunity for investors as Rivian enters a critical and transformational period. One Wall Street analyst who recently hosted a talk by Rivian CEO R.J. Scaringe does believe now is the time to jump into Rivian stock.

"Pull the trigger" on Rivian

Rivian's CEO has been making the rounds to Wall Street analysts, expressing what he sees as a big opportunity for his company. He spoke with analyst George Gianarikas at Canaccord Genuity's recent 2025 Sustainability Summit and cited the "extreme lack of choice" among domestic EV models as one factor holding back EV sales growth.

Scaringe reiterated that sentiment at the Wolfe Research Autos summit on March 18. He said that there were "very few highly compelling choices" at price points under $50,000. That's exactly the target market for Rivian's coming R2 SUV.

One takeaway Gianarikas took from the summit was that he thinks now is a good time to "pull the trigger" on Rivian shares.

Rivian's lower-priced R2 SUV should begin shipments next year. Image source: Rivian Automotive.

Rivian aims to close the EV gap

Investors paying attention could get into Rivian stock just as it fills a critical niche in the market. It's also a time when some of the larger legacy automakers are throttling back EV commitments and aspirations. Rivian's CEO thinks a lack of options for mass-market electric vehicles for under $50,000 has led to the lag in U.S. adoption compared to China and Europe. He wants Rivian's coming R2 SUV to address that gap.

Gianarikas agrees and thinks Rivian will soon be the leader of non-Tesla EV manufacturers in the U.S. He called the opportunity "timely" and said Rivian has the chance to become "the next American auto icon."

The EV leader itself looks to be giving Rivian an opening, too. Investors and consumers alike have become increasingly frustrated with Tesla CEO Elon Musk and his pivot into politics. It's very likely that damage to Tesla's brand, and frustration with Musk's public persona, has led to some amount of lost sales.

Tesla's first-quarter vehicle sales came in much below already lowered estimates. Whether that's from consumer protests or sluggish overall EV demand, Rivian's R2 and the even smaller and less expensive R3 could be the models to fill the gap.

Remember the risk profile

Gianarikas went as far as to say, "It's Rivian's moment." He is right that it could be. The lack of EV options under $50,000 certainly puts Rivian in an opportunistic place with its R2 rollout coming next year. It has established its brand in the sector even with relatively low levels of sales.

First-quarter deliveries were within expectations at about 8,600 units. Rivian expects deliveries to be relatively flat or slightly down this year versus 2024 as it prepares to start R2 production. Those aren't unexpected results and estimates. Risk remains, though, in how the R2 production ramp-up and reception from consumers will play out. The Canaccord analyst summed it up well, writing:

The rubber will/should hit the road with the R2. The price is right. As are the features. As are the aesthetics. After years of hard work with the right vertically integrated strategy, Rivian's time to scale and break into the American consciousness is coming soon.

It's a good setup for Rivian. But there are many things out of its control, including consumer interest in EVs and a strong enough economy to support big-ticket purchases. Only investors with sufficient risk tolerance should own the shares. And even then, with only a proper allocation based on the risk profile. The time seems right, however, especially with Rivian stock still below $12.

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

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Howard Smith has positions in Rivian Automotive and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.