Of course, there are other reasons that are dragging RIVN down. The company remains pre-profit, and is beginning to ramp up production of its R2 vehicles (which doesn’t come without costs or risks).
Investor Ryan Vanzo points to an interesting parallel with another EV company that’s gone down this road before, and spots some reasons to believe that Rivian could follow “a similar path to growth.”
“It’s putting the pieces in place to compete in the same markets as Tesla,” says the 5-star investor, who is a writer for The Motley Fool.
Vanzo points out that Tesla isn’t just an EV company, and its behavior is more akin to an AI stock “with a valuation premium to match” (citing a price-to-sales multiple in the low-teens). That’s mostly due to its autonomous driving ambitions, he adds.
And Rivian is looking to play in the same sandbox. Only with Rivian, investors have the opportunity to buy into this story at a much cheaper premium of ~3x sales, notes Vanzo.
