Rivian Stock: Buy, Sell, or Hold?

Some investors are hoping Tesla's recent controversies will give Rivian a much-needed boost.

Apr 2, 2025 - 09:23

The investment landscape for electric vehicle (EV) companies is in disarray, in part because of the troubles of the current U.S. EV sales leader. Tesla (NASDAQ: TSLA) CEO Elon Musk's controversial actions and statements over the past several months are affecting sales for the vehicle manufacturer and tech company both in the U.S. and internationally. Tesla's woes have some investors wondering if there is an opportunity for Rivian Automotive (NASDAQ: RIVN) to gain more sales traction, trim its losses, and get its stock off the mat.

Rivian stock is trading down by more than 90% from the all-time high it touched shortly after it went public in late 2021. If it does benefit from Tesla's woes, the stock is sure to rise as well. However, investors should look both ways before crossing the street to buy Rivian stock. Management set a disappointing bar for 2025, and economic and political factors could work against the company.

Regardless of your political slant, it's hard to argue against the idea that Musk's political involvement has polarized people's views about the Tesla brand. Recent registration data for new Teslas in Europe and widespread protests of the brand point to a likely first-quarter sales decline for its EVs. If Tesla's sales are actually sliding and continue to, that could benefit other EV companies, including Rivian.