Tax Credit Cut, A Spontaneous Tesla Boycott, And Why The Rivian Selloff Is Unjustified

Summary:

• Rivian’s valuation is a top contrarian opportunity for 2025, driven by minimal impact from the consumer tax credit cut and a boycott against Tesla.
• The Volkswagen JV provides $5.6B for Rivian’s capital needs, ensuring growth and production ramp-up for the R2 SUV in 2026.
• Rivian is on the verge of achieving gross profitability by Q4 2024, driven by higher revenue per unit and operational efficiencies.
• As the market realizes Rivian’s resilience to tax credit changes and shifts away from Tesla, Rivian is poised for significant success.

Years of beaten-down Electric Vehicle stocks have culminated in a recent crash post-US election due to a clear anti-EV message from Trump, but there’s good reason to believe that it might be a buying opportunity for Rivian (NASDAQ:

Analyst’s Disclosure: I/we have a beneficial long position in the shares of RIVN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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