Even though Rivian Automotive (NASDAQ:RIVN) is poised to disrupt the new-energy vehicle market, Wall Street doesn’t seem to fully appreciate the company quite yet. That’s fine, as it presents a terrific opportunity to buy RIVN stock.
As we’ll discover, there’s been plenty of positive press coverage surrounding Rivian Automotive lately. The company is garnering a reputation for developing powerful, high-range electric vehicles (EVs).
Previously, I recommended buying RIVN stock anywhere below $20. But truthfully, it’s fine to start a share position anywhere near that price. That’s because recent news items clearly put Rivian Automotive and its investors in the driver’s seat.
Reasons to Get Charged Up About RIVN Stock
There’s so much positive news pertaining to Rivian Automotive, it’s hard to know where to begin. A good starting point would be Rivian’s 12,640 vehicle deliveries in 2023’s second quarter. That’s quite an improvement over the 4,467 vehicle deliveries from the year-earlier quarter.
Furthermore, BNP Paribas analyst James Picariello upgraded RIVN stock from “hold” to “buy.” Picariello also hiked his price target on Rivian shares from $24 to $30. This implies substantial upside from the current stock price.
On top of it all, Rivian Automotive’s have earned positive coverage in the automotive press, including the influential online publication InsideEVs. For example, InsideEVs reported that Rivian’s quad-motor R1S SUV model was “the first production electric vehicle to conquer the Rubicon Trail,” near the California-Nevada border; this is known to be “one of the toughest off-road trails in the world.”
But wait, there’s more. According to InsideEVs, a version of Rivian Automotive’s dual-motor Rivian R1T truck model scored an Environmental Protection Agency (EPA) combined range of 352 miles. That’s impressive, though of course there’s no guarantee that every Rivian truck will achieve such a high range.
Rivian Automotive Joins a Major Charging Network
Still not convinced that you should buy RIVN stock? Fine, here’s more good news to get you motivated.
Here’s the rundown: Rivian Automotive disclosed that its R1T and R1S models are now compatible with EVgo’s (NASDAQ:EVGO) fast-charging system, known as Autocharge+. Consequently, R1T and R1S drivers will be able to charge up their vehicles “in second” with EVgo’s Autocharge+ stations.
It seems that the market is underestimating the significance of this development. As EVgo Chief Technology Officer Ivo Steklac observed, “[T]he more frictionless and dependable an experience is, the more people will embrace it.”
I fully concur with this; today’s EV drivers seek ease and convenience, and the Autocharge+ network provides it. Or, to quote Steklac again, “Autocharge+ offers the seamless customer experience that drivers expect.”
Buy RIVN Stock Near $20
Do you have to wait until the Rivian Automotive share price drops below $20 to take a position? Not necessarily. It’s fine to start buying the shares anywhere near $20, in my opinion.
Given the preponderance of positive news, it’s surprising that the market isn’t super-optimistic about Rivian Automotive. I suspect that the tide of sentiment will turn positive soon enough. Therefore, I recommend taking a long position in RIVN stock below $20 and possibly even at or slightly above $20.
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.