- Rivian Automotive Inc. was founded in 2009.
- The company surpassed Ford and General Motors during its listing on NASDAQ.
- RIVN stock was trading at a market value of $28.85 at the time of writing.
Company CEO Optimistic for Organization’s Growth
With the increasing carbon emissions contributing to global warming, automotive companies have slowly started to focus on electric vehicles. Rivian Automotive Inc. (NASDAQ: RIVN) is among such pioneers in the EV industry. Company’s IPO happened on November 9, 2021 on NASDAQ. It started well on the charts, surpassing the market cap over $100 Billion (Better than Ford and General Motors at the time), but that was the only time Rivian stock price tasted the high rise.
Recently RJ Scaringe, company’s CEO, talked about their profitability saying that this was a challenging year for them considering this year’s launches. He added that the company holds enough capital to survive until 2025 and has shifted their focus primarily on scalability. They will launch their R2 platform in 2026 in multiple global markets.
The company also joined forces with Tenneco, an automotive component manufacturer, to enhance their R1T pick up truck and R1S SUV models. The collaboration will help the vehicles to upgrade their suspension setup. Both the models have received positive reviews in the past and the enhancement may bring more appreciation to the table.
Tenneco supplies automotive parts to companies like McLaren. In fact, Rivian has used a central body valve block from Tenneco, a component similar to the design used in McLaren. The company is confident in their future sales and believes that they will sell everything they’ll produce in 2024.
Rivian Stock Price Analysis
Rivian Automotive Inc. was listed just the previous year and immediately surpassed a couple of aforementioned automotive giants. Rivian stock price has created a bear trend since. The share traded the highest in November 2021 at $179 for a short span of time and started loosening the grip in the same month.
The shares have lost over 80% in their value in contrast to their all time high, currently trading at $28.85, a 0.73% drop in a day. Rivian share price has constantly maintained support level at $19 – $20 and resistance around $42 – $43 since May 2022. The upcoming developments may help the price to go up a bit but that depends on the buying interest of the investors.
If we take the EV industry into account, increasing greenhouse gases may give rise to rising demand in the sector. Still the company needs to tackle the steps of other giants including Tesla (NASDAQ: TSLA), Chargepoint (NYSE: CHPT) and more. Lithium demand will play an important role in the company’s growth as it is a vital component for electric automotives. The element’s production has grown significantly from 28,100 Metric Tonnes in 2010 to 82,500 Metric Tonnes in 2020, peaking to 95,000 Metric Tonnes in 2018.
Source: https://www.thecoinrepublic.com/2022/12/01/these-factors-can-significantly-affect-rivian-stock-price/