The Rivian Automotive Inc (NASDAQ: RIVN) stock price has risen 68.4% in the past six months, driven by positive investor sentiment towards the electric vehicle manufacturer. Some positive factors that have driven RIVN stock higher include its upcoming SUV launch.
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The demand for Rivian’s SUVs based on the Enduro driving platform should be much higher than its premium pickup trucks, priced from $84,000 to over $100,000. The company’s new range of SUVs should cost between $40,000 and $60,000, attracting more buyers.
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The company is in the middle of a massive transformation as it seeks to refocus its attention from the premium pickup segment of the market to the mid-range by making more affordable vehicles. The company has launched its Eduro drive trains that will use two motors to drive the vehicle, versus the current 4-motor setup in the premium pickups.
The performance of the R1 vehicles that use the two motors instead of the four motors will not be heavily impacted. The two-motor vehicles have more range than their 4-motor counterparts on the same battery pack.
The SUVs, which will cost between $40,000 and $60,000, will be a game changer for the company as there is reportedly significantly less competition in the electric SUV space than in the electric pickup market.
Rivian has been turning out its 4-motor high-end R1T pickups for two years and, over the past year, has been ramping up its deliveries of R1S SUVs to folks who ordered early. The top-end Enduro drivetrain will lose 100 horsepower and 208 ft-lbs of torque, but it still is a monster.
At 700 horsepower/lb-ft torque, it still produces a blistering 3.5 second 0-60 time, putting it on top of the pickup world. The company is also dealing with a situation where demand for its premium R1T pickup truck is dwindling.
Rivian can now deliver an R1T pickup truck to a new customer within a fortnight. The company also continues to produce thousands of delivery vehicles for Amazon to hit its target of 100,000 delivery vehicles.
Rivian (RIVN) stock price.
The Rivian (RIVN) stock price has risen 68.44% in the past six months. Is it a buy today?
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