Rivian Automotive (NASDAQ:RIVN) stock spiked in July but then sank in August. So, what will autumn bring for Rivian’s loyal investors? Given the company’s impressive progress in a highly competitive electric vehicle (EV) market, I’m preparing for a Rivian Automotive share-price boost during these cool autumn months.
Rivian Automotive isn’t the biggest or best-known EV manufacturer by any means. Yet, if you’re looking for the next hypergrowth story in the EV space, keep an eye on Rivian Automotive. If Rivian becomes the next breakout star and its market capitalization goes vertical, you’ll wish that you had invested sooner.
Surprising Facts RIVN Stock Traders Need to Know
No reasonable person expects Rivian Automotive to overtake a famous EV-industry giant like Tesla (NASDAQ:TSLA) in terms of market share or customer loyalty. Yet, even if Tesla is the current champion among EV makers, you’ll probably be surprised to discover that Rivian is making inroads as a Tesla alternative.
According to S&P Global Mobility (NYSE:SPGI), “When it comes to the Model S, the most popular non-Tesla replacement is led by” Lucid Group’s (NASDAQ:LCID) Lucid Air model “at 3.4%.” However, in second and fourth places behind the Lucid Air are the “Rivian R1T at 1.8%” and the “Rivian R1S at 1.2%.”
Here’s the real kicker, though. Apparently, Rivian Automotive’s R1T EV model “also factors as the most popular non-Tesla for those replacing a Model 3 or a Model Y, at 1.3% and 2.1%, respectively.” In other words, Rivian Automotive presents an emerging and serious threat to Tesla.
How Rivian Automotive Is Outpacing Rival EV Startups
Rivian Automotive is potentially stealing market share from Tesla. At the same time, Rivian is also making headway against some non-Tesla EV manufacturers. Reportedly, Rivian garnered 2,750 registrations for its R1T and R1S EV models in July. Furthermore, Rivian recorded 18,359 new registrations (not including electric delivery vans) from January to July.
In comparison, Lucid garnered only 348 registrations for its Air EV in July; through July, Lucid’s year-to-date total registrations reached 3,789. Meanwhile, Vietnamese EV maker VinFast Auto (NASDAQ:VFS) recorded 19 new registrations for its VF 8 electric SUV in July and 170 new registrations year-to-date through July.
Then there’s Fisker (NYSE:FSR), which just delivered its first EV in the U.S. in June. Consequently, there were only 30 new Fisker Ocean registrations in the month of July. That brought the total to 37 new registrations year-to-date through July.
It’s probably too soon to pass judgment on Fisker in terms of new U.S. EV registrations. Nevertheless, Rivian Automotive appears to be an emerging leader among non-Tesla clean-energy vehicle manufacturers.
Hold RIVN Stock Through the Rest of 2023
Rivian Automotive doesn’t have to be bigger than Tesla. It only needs to demonstrate growth in key areas. As we’ve seen certain statistics indicate that Rivian is definitely on the right track.
So, I suggest that investors should give Rivian Automotive a chance. The company needs some time to prove itself. Therefore, hold RIVN stock through the fall and into the winter months. After that, you can re-assess your share position.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.