Should You Buy Rivian While It's Below $12?

Howard Smith, The Motley Fool

Sat, Apr 12, 2025, 5:15 AM 5 min read

Rivian Automotive (NASDAQ: RIVN) stock hasn't been spared from the tariff-inspired market crash. The electric vehicle (EV) company doesn't manufacture overseas, but it still participates in a global supply chain and is reliant on a strong U.S. consumer economy.

The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 each hit 52-week lows as the market panicked over President Donald Trump's global tariff plans. Rivian stock plunged as well, punctuating a 20% drop over the last three months.

That could be a buying opportunity for investors as Rivian enters a critical and transformational period. One Wall Street analyst who recently hosted a talk by Rivian CEO R.J. Scaringe does believe now is the time to jump into Rivian stock.

Rivian's CEO has been making the rounds to Wall Street analysts, expressing what he sees as a big opportunity for his company. He spoke with analyst George Gianarikas at Canaccord Genuity's recent 2025 Sustainability Summit and cited the "extreme lack of choice" among domestic EV models as one factor holding back EV sales growth.

Scaringe reiterated that sentiment at the Wolfe Research Autos summit on March 18. He said that there were "very few highly compelling choices" at price points under $50,000. That's exactly the target market for Rivian's coming R2 SUV.

One takeaway Gianarikas took from the summit was that he thinks now is a good time to "pull the trigger" on Rivian shares.

Investors paying attention could get into Rivian stock just as it fills a critical niche in the market. It's also a time when some of the larger legacy automakers are throttling back EV commitments and aspirations. Rivian's CEO thinks a lack of options for mass-market electric vehicles for under $50,000 has led to the lag in U.S. adoption compared to China and Europe. He wants Rivian's coming R2 SUV to address that gap.

Gianarikas agrees and thinks Rivian will soon be the leader of non-Tesla EV manufacturers in the U.S. He called the opportunity "timely" and said Rivian has the chance to become "the next American auto icon."

The EV leader itself looks to be giving Rivian an opening, too. Investors and consumers alike have become increasingly frustrated with Tesla CEO Elon Musk and his pivot into politics. It's very likely that damage to Tesla's brand, and frustration with Musk's public persona, has led to some amount of lost sales.