Rivian does his promise. Is this TOP -EV stock worth the risk?

Rivian Automotive (Nasdaq: rivn) Is no TeslaPresent At least not yet. Tesla, right or wrong, is the goal that most investors have in mind when you look at an electric vehicle (EV) manufacturer. However, Rivian positions this as an opportunity and as a risk. This company corresponds to the promises that it made to investors, but still has a long way to go before it is a sustainable profitable company.

Is this EV share worth the risk? Let us find out.

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Rivian has achieved a lot

Tesla took a long time to get the way from hardly more than a concept to a sustainably profitable EV manufacturer with a production of around 1.7 million vehicles per year. The first step was to transform the concept into an actual car. Rivian also has this goal with award -winning trucks and a large contract with Amazon.com for delivery vehicles.

Image source: Getty Images.

The path of Tesla also required that he set up its production facilities so that production could scale. This is the step in which Rivian now has a plateau. In 2023 it produced around 57,000 EVs. In 2024 it produced around 49,000, a drop that requires a little discussion. This is because the big goal in 2024 was not to further increase production in order to catch larger colleagues like Tesla and some of the old car manufacturers who also produce electric vehicles.

Rivian entered 2024 with two main goals. The first was to achieve gross profit in the fourth quarter of the year. The second, which was the first destination on duty, was to revise its production facility in order to reduce the costs for the manufacture of its trucks. It makes no sense to further increase production if the process does not create enough value. This is the position in which Rivian was located, with every vehicle that it sold, cost more for production than the income brought in the door.

It was successful on both fronts, especially in the fourth quarter of the year, especially on schedule.

The goal of the year, the front

Rivian’s big goal of 2025 is a gross profit throughout the year. Basically, this means that it should extend the success of the fourth quarter from 2024 to 2025. This does not seem to be a great expectation, but it is an important step for the company because it seems to be sustainable at the end of the end. In fact, the production goal of management is approximately flat, which provides more time for improving its processes in order to position the company for long -term success.

However, Rivian is also realistic about the future and emphasizes “changes in the state guidelines and regulations and a challenging demand environment” as a potential headwind. These are not small problems because one of the major sales points for EVS was driven by government subsidies. If these, if they disappear, may be less competitive with burning engine vehicles. And there is already a price problem on the demand side with Rivian’s truck because they are at the top of the market.

Rivian was successful in 2024 with the internal challenges, including parts restrictions after his production processing. There is no way to know whether it overcome the obstacles that it faces in 2025. At the same time, the company pushed deep into the parts, including Amazon and Volkswagen. Cash is burning because it continues to invest in its business, but such partnerships suggest that there is more money than it seems when you look at the company’s balance sheet and the bar of around 7 billion US dollars.

RIVN data from Ycharts

Tesla had to do all of this too

Tesla now proves that everything Rivian tries to do has already been done. There is a roadmap if you like. While it is true that Rivian is exposed to much more competition, nothing that it does is really unique. And then there is the share price, which fell from its climax by 90% when Wall Street was a little, maybe a lot, too in love with EV shares.

It seems to be very similar that investors have given up Rivian, although it has proven to be a survivor who is able to achieve the goals. Although it is not the type of shares that a conservative investor should look at, those with more risk tolerance may want to give a second chance because he is constantly working to replicate Tesla’s success.

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