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RIVN: Rivian stock grows strongly thanks to high demand for electric vehicles
- Rivian Automotive Inc. (RIVN) is an American electric vehicle manufacturer, founded in 2009 and went public in November 2021.
- RIVN stock has risen more than 45% in the past five days, from $106.75 on June 30, 2023 to $155.68 on July 7, 2023, reaching a market value of over $150 billion.
- The growth of RIVN was driven by positive news about the company’s electric vehicle deliveries, as well as expectations about the growth potential in the fast-growing electric vehicle market.
- According to Rivian’s report, the company delivered 1,000 electric vehicles in the second quarter of 2023, doubling from the first quarter of 2023. The company also said it had more than 55,000 orders for its models, including the R1T pickup truck and the R1S SUV.
- Rivian also benefited from the support of major investors such as Amazon, Ford and T.Rowe Price. Amazon ordered 100,000 electric delivery vehicles from Rivian and expected to receive all the vehicles by 2030. Ford also invested in Rivian and used the company’s electric platform to develop the F-150 Lightning pickup truck.
- In addition, Rivian plans to expand its production and distribution in international markets such as Canada, Europe and Australia. The company is also building its own charging stations for its customers, called Rivian Adventure Network.
- However, RIVN also faces many challenges and risks in the competitive field of electric vehicles. The company has not made a profit and expects to continue to record losses in 2023. The company also has to compete with big rivals such as Tesla, General Motors and Volkswagen, as well as other newcomers such as Lucid Motors and Fisker.
- Moreover, RIVN depends on the supply of components and materials for electric vehicle production, especially semiconductors, batteries and steel. These supply shortages could reduce the company’s production and delivery capacity, affecting revenue and profit.
- Therefore, RIVN is a stock with high growth potential thanks to high demand for electric vehicles, but also has high risk due to fierce competition and supply shortage. Investors interested in RIVN should closely monitor the company’s business indicators, as well as news about the electric vehicle market in the coming time.
