Despite maintaining its annual output plans, Rivian stock (NASDAQ:RIVN) is failing to cling to gains.
This week, Rivian stock (NASDAQ:RIVN) has taken investors on a wild journey. However, it’s nothing to do with the efficiency of its electric vehicles. As of this writing, the company’s stock is up 3.39% for the week. That’s good news for investors who have seen the stock drop 64% in the past year.
However, after surging 11% on news that it raised output in the most recent quarter and will maintain its existing production objectives, Rivian stock (NASDAQ:RIVN) is fighting to keep those gains as macroeconomic concerns resurface.
Can the Early Adopters Deliver?
A predictable wave of buyer behavior accompanies every new trend. The inventors are at the forefront of this wave, followed by the early adopters. Early adopters are prepared to pay a premium to help launch new goods and services. And may have a significant impact on whether things are selected.
Rivian has strategically good alliances in place. It now produces 100,000 electric delivery vans for Amazon (NASDAQ:AMZN). In addition, the business has secured an agreement with Mercedes-Benz to produce electrified automobiles in Europe. This would provide Rivian a foothold in a market that would be its next natural step outside the United States.
On the other hand, investors have seen a similar situation play out between Rivian and Ford Motor (NYSE:F). That did not go as planned for Rivian investors. Is history repeating itself? I’m not sure, but neither does anyone else. So it’s something to keep an eye on, but I’m not sure it moves the needle for me.
Analysts’ Predictions Are Mixed
On the one hand, the consensus price target for Rivian stock (NASDAQ:RIVN) remains at $63.05. That’s a 76% increase over the stock price as of this writing. However, when you dig deeper into the numbers, you’ll notice that many of the most recent price targets for Rivian stock (NASDAQ:RIVN) are significantly lower. Some are even less expensive than the current stock price.
Rivian Stock Is a Buy Right Now
The electric vehicle market is a cautionary tale about what happens when bubbles burst. It is frequently painful for investors who entered the market at the wrong time.
With that stated, speculative investors may earn a lot of money if they are prepared to acquire and hold shares. Rivian has a customer base. However, at such a high price, it’s uncertain how huge a market that will be. That is my main issue about Rivian stock.
Featured Image – Megapixl © Redwood8
Author Okoro Chinedu 
