How to invest in Rivian

How to invest in Rivian

How to invest in Rivian

Rivian is an American manufacturer of electric vehicles. Founded in 2009, this company is not one of the big car manufacturers that have dominated the market for years. However, it is considered one of Tesla’s main rivals. Instead, this newcomer hopes to take advantage of the EV transition to enter the personal vehicle market and help reshape it forever. Here’s what you need to know as an investor. Whether you invest in established companies or want to buy a stake in a new company, benefit from the insights and guidance of a financial advisor.

Rivian’s business model

Rivian is an electric vehicle company that focuses on truck-style products. For the consumer market, the company builds pickup-style vehicles and sport utility vehicles. For the business market, the company builds delivery vans and an interchangeable “skateboard” chassis that allows for modifications based on the needs of an individual business.

Rivian also plans to open and operate a network of electric vehicle charging stations in Canada and the United States. In 2021, the company launched three models. Its vehicle keys are equipped with Bluetooth wireless technology and near field communication. At the time of writing, its market cap was around $34 billion.

How to invest in Rivian

How to invest in Rivian

How to invest in Rivian

You can invest directly in Rivian. This Amazon-backed company went public in November 2021. It is a common stock listed as Rivian Automotive, Inc. on the NASDAQ market. Its ticker symbol is RIVN, and at the time of writing it was trading for around $43. If you wish to invest in this stock, you can do so directly through any broker who trades public shares. This can involve:

If you trade stock through a third-party broker, you can contact them and instruct them to buy Rivian stock on your behalf.

If you trade shares through an online broker, such as E*TRADE, you can buy Rivian shares on your behalf. Log in to your wallet account and search for RIVN stock. You will then be able to buy Rivian shares directly.

Risks and opportunities

Rivian’s main opportunity and risk are the same: it is attempting to enter an established industry with brand new technology. While there are risks and rewards to entering an established industry, the biggest problem with Rivian is that it’s a new technology company. Electric vehicles are still an evolving industry. While this technology has reached a certain level of consumer adoption, it hasn’t quite arrived yet. Issues such as distance travelled, charging times, charging access and charges continue to raise issues with the widespread adoption of electric vehicles.

In particular, the ideal user class for current electric vehicles are urban drivers, as these are consumers who need their cars for shorter periods who are more easily adapted to the range of an electric vehicle. Yet this is also the class of consumers most likely to live in an apartment, and therefore lack access to an overnight charging station for their vehicle. Conversely, suburban and rural consumers are more likely to own their own homes and therefore be able to build a station in their driveway or garage for overnight charging. Yet these are also the category of consumers most likely to need their car for the kind of long journeys for which electric vehicles are not yet suited.

Engineers are confident that automakers can and will fix these problems, but the question of who and how remains open.

The bottom line

How to invest in Rivian

How to invest in Rivian

Rivian is an electric vehicle company that focuses on trucks and truck-style vehicles. It was founded in 2009 and went public in late 2021. The shares are available on the NASDAQ stock exchange under RIVN. Rivian will likely do quite well if it can stay technologically at the forefront of this competitive industry. He will probably fight if he can’t. The volatility of the company’s stock, which has fluctuated between highs above $170 and lows around $50, reflects this uncertainty.

Tips for investing

  • EVs are becoming huge, with many automakers committing to partial or full overhauls of their fleets. Yet fueling remains arguably the biggest obstacle to widespread adoption. However, it can take 15 to 30 minutes to recharge an electric vehicle, far too long for a stop at the petrol station. This is a problem in many places, but not all.

  • Investing in a single company is a gamble, but that doesn’t mean it’s a bad idea. Consider working with a financial advisor as you evaluate the shares of electric vehicle companies. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three financial advisors serving your area, and you can interview your advisors at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you reach your financial goals, get started now.

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