--- title: "Where Will Rivian Stock Be in 10 Years?" description: "Rivian Automotive's stock has declined by over 90% since going public in 2021, due to industrywide weakness and company-specific challenges. However, the company aims to generate a gross profit by the" type: "news" locale: "en" url: "https://longbridge.com/en/news/207068586.md" published_at: "2024-06-24T11:47:15.000Z" --- # Where Will Rivian Stock Be in 10 Years? > Rivian Automotive's stock has declined by over 90% since going public in 2021, due to industrywide weakness and company-specific challenges. However, the company aims to generate a gross profit by the end of this year through cost-focused changes and improving economies of scale. Lower interest rates and protectionist policies could benefit Rivian in the long term. While its future looks promising, investors may want to wait for more data before investing. The stock is considered affordable compared to alternatives like Tesla. The stock of **Rivian Automotive** (RIVN -0.10%) has floundered since hitting public markets in late 2021, losing more than 90% of its value in just over two years. Industrywide weakness can take the blame for some of these declines in the electric vehicle (EV) business. But Rivian also faces company-specific challenges that have made it particularly vulnerable to the poor macroeconomic environment. Let's discuss how the struggling automaker might perform as these headwinds potentially ease over the next decade. ## A challenging time for the industry The early adopters for EVs have already been reached. So companies must now appeal to more-discriminating mass market consumers who might be less worried about the environment when compared to the familiarity and conveniences of a gasoline-powered vehicle. Challenges like high interest rates (which can make financing a car more expensive) could further strain the industry. That said, Rivian's top-line growth is still impressive. First-quarter revenue surged 82% year over year to $1.2 billion. But while momentum is good, this only tells half the story. Management said it generated a gross loss of $38,784 on every vehicle it sold that quarter -- before accounting for overhead like advertising, office salaries, or research. At the end of the day, companies exist to generate profits. With such poor margins, it's no surprise that Rivian's shares have performed so catastrophically since going public, despite the company's impressive revenue growth. ## Rivian's long-term future The decisions Rivian makes today will make or break its future. And the good news is that management has a plan to turn things around. According to CEO R.J. Scaringe, the company expects to generate a gross profit by the fourth quarter of this year. It aims to achieve this ambitious goal by improving economies of scale, plant retooling, and cost-focused material changes in the vehicle lineup. Switching to cheaper materials is within Rivian's control, so management has a high likelihood of meeting guidance. And if the company can achieve a gross profit this year (while maintaining a healthy growth rate), that opens the door for it to scale up into operating profitability and eventually net income, which will generate sustainable value for investors. Over the next 10 years, Rivian might also enjoy macroeconomic tailwinds. Many analysts believe interest rates have peaked for the foreseeable future, with Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, saying it is a "reasonable prediction" that the central bank could start cutting rates this year. With lower interest rates, more people will be able to purchase Rivian's relatively expensive vehicles. Image source: Getty Images. Rivian should also benefit from U.S. protectionist policies. In May, the White House imposed a 100% tariff on Chinese EVs. This move could decimate the market for cheaper imports and buy Rivian time to get its act together. Unlike rivals such as **Tesla**, Rivian has no significant operations in China, limiting the impact of potential retaliation from Beijing. ## Is the stock a buy? Rivian seems to have a bright future over the next 10 years as a combination of falling interest rates, protectionism, and improving margins boosts its growth and profit potential. And with a forward price-to-sales (P/S) multiple of 2.1, the stock is an affordable way to bet on the industry relative to alternatives like Tesla, which has a P/S ratio of 6.8. That said, investors might still want to wait for a few more quarters of data before betting on Rivian. While the company's long-term future looks bright, it is currently in a challenging situation that could cause its stock price to continue dropping before things get better. ### Related Stocks - [TSLA.US - Tesla](https://longbridge.com/en/quote/TSLA.US.md) - [RIVN.US - Rivian Automotive](https://longbridge.com/en/quote/RIVN.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 板岩的定價將在六月公佈，“空白板巖” 卡車的價格仍預計在兩萬美元中段範圍內 | Slate Auto，一家電動車初創公司，將在六月公佈其 “Blank Slate” 電動皮卡的定價。該車型預計將成為最實惠的電動車之一，初始目標定價低於 20,000 美元，儘管最近的聯邦激勵措施變化可能會影響這一點。這款卡車具有可定製的 | [Link](https://longbridge.com/en/news/276367534.md) | | 官方 Slate 卡車的定價將在六月底公佈 | Slate Auto 將於六月底公佈其經濟型電動皮卡 “Blank Slate” 的定價。首席執行官 Chris Barman 表示，基礎型號的起售價將在 2 萬美元中段。與其他電動汽車初創公司不同，Slate 的皮卡將不提供選項，允許買家 | [Link](https://longbridge.com/en/news/276389542.md) | | Rivian 股票剛剛突破其關鍵支撐位。你是否應該在此追逐這波漲勢？ | Rivian 股票剛剛突破其關鍵支撐位。你應該在這裏追逐這波反彈嗎？ | [Link](https://longbridge.com/en/news/276139901.md) | | 播客：新的特斯拉（臨時）Cybertruck，Cybercab，福特希望中國進入美國市場，以及更多內容 | 在本週的 Electrek 播客中，主持人討論了可持續交通和能源的最新動態，包括新的臨時特斯拉 Cybertruck、Cybercab 的更新，以及福特在中國擴大其在美國市場存在的興趣。該播客每週五東部時間下午 4 點在 Electrek | [Link](https://longbridge.com/en/news/276484722.md) | | Siligmueller & Norvid Wealth Advisors LLC 新增對特斯拉公司 $TSLA 的 69 萬美元投資 | Siligmueller & Norvid Wealth Advisors LLC 在第三季度投資了 690,000 美元於特斯拉，購買了 1,550 股。其他機構投資者也增加了在特斯拉的持股，挪威銀行和先鋒集團進行了大規模購買。特斯拉的股 | [Link](https://longbridge.com/en/news/276513419.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.