Rivian Share Price Forecast February 2022 – Time to Buy RIVN?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of electric vehicle start-up Rivian (NASDAQ: RIVN) are in the red today, after closing at $57.53 as of February 23rd (19:59 EST). Rivian shares, which peaked at more than $160 per share shortly after it went public in November 2021 has now dropped well below its $78 IPO price. The declining price resulted in a number of well-known investors such as George Soros, Dan Loeb, and Philippe Laffont all becoming shareholders in Rivian.
Rivian – Technical Analysis
Rivian’s financial statement indicated its market cap at $51.795 billion with total assets worth $8.488 billion.
Moving averages for Rivian such as Exponential Moving Average (10)(62.83), Simple Moving Average (10)(63.43), Exponential Moving Average (20)(65.15), Simple Moving Average (20)(62.29) and Exponential Moving Average (30)(69.46) are indicating a sell action. Oscillators such as Relative Strength Index (14)(38.53), Stochastic %K (14, 3, 3)(37.56), Commodity Channel Index (20)(−98.04), Average Directional Index (14)(20.30) and Awesome Oscillator(−3.99) are neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider
Recent Developments
Rivian was founded in 2009 and received significant investments in 2015. In 2021, the company became public through an IPO where 153 million shares were sold at an initial offering price of $78.00. Ford and Rivian discontinued their plans to co-develop an electric vehicle on November 19, 2021. Ford retained a 12% stake in Rivian, which reached a value of more than $10 billion after the IPO. The company delivered the R1S SUV model in December 2021. The company is now underway to develop a network of public charging stations ( both fast chargers and slower destination chargers) across the United States and Canada by 2023.
Rivian recently announced that their $5 billion manufacturing expansion project is facing opposition from local residents in Georgia. This has resulted in the state taking control from local officials to be able to bypass local zoning laws in an effort to pass the project through. However, Rivian has to address the situation with the local community themselves for the project to be successful in the long run. The plant, which has the capacity to produce 400,000 vehicles per year when complete, will begin production in 2024.
Rivian currently has healthy pre-orders for its pickup truck and SUV. Amazon which holds an 18.1% stake in the company has ordered 100,000 electric delivery vans. Ford holds another 12% of Rivian. The company faces several risks as a young EV maker in an extremely competitive market. Rivian has taken some risk off the table by delivering its first products which remain largely untested in the market. It remains to be seen how much customers accept them. The company has fared well so far despite these risks. institutional investors, including George Soros, are bullish on the company’s prospects.
Should You Buy RIVN Shares?
Rivian is currently focusing on three distinct EV market niches. It expects the markets for electric pickup trucks, SUVs, and commercial delivery vans to be huge. Buying Rivian shares at the moment requires high-risk tolerance. It also requires the realistic expectation of how long it will take to play out to be successful.
The expansion in manufacturing and other aspects of the business aren’t going smoothly as evidenced from the Georgia incident. However, the company’s product has won the MotorTrend 2022 Truck of the Year. While the shares can get volatile and drop further, it does offer an entry point to begin phasing into an investment with the proper allocation and expectations.
Buy RIVN Stock at eToro from just $50 Now!
