3 Reasons to Buy Rivian Stock Like There's No Tomorrow

Rivian's Financial Progress - Rivian is close to achieving a positive gross profit, indicating that its revenue from vehicle sales is sufficient to cover production costs [1] - The company aims to post a "modest gross profit" in Q4 2024, despite supply chain challenges [9] - Achieving gross profit is a significant milestone, showing potential for scaling production and covering other costs [10] Strategic Partnerships - Rivian has a foundational relationship with Amazon, which provides a solid customer base for its delivery vehicles [3] - Amazon stepped in to assist Rivian during supply chain issues in 2024, highlighting the strength of their partnership [4][5] - Rivian expanded its partnership with Volkswagen in 2024, securing an additional $5 billion in funding over several years [15] - The Volkswagen partnership not only provides immediate cash but also positions Rivian as a long-term technology supplier [12] Financial Position and Challenges - Rivian's cash reserves decreased from$7.9 billion at the start of 2024 to $5.4 billion, reflecting high capital expenditures in the auto industry [7] - The company shifted production strategies to mitigate supply chain constraints, focusing on Tri-Motors and commercial vans [11] Market Potential and Risks - Rivian is making strides toward profitability and leveraging key partnerships to grow its business [13] - The EV market is highly competitive, and while Rivian shows promise, there are risks associated with its ambitious goals [14]