Rivian Automotive (NASDAQ:RIVN) isn’t immune to the warning lights flashing across the global economy. With recession fears mounting and consumers tightening their belts, demand for new vehicles is taking a hit. Rivian’s stock has already felt the impact, sliding around 11% year-to-date.
Still, the EV company has shown some positive signs of late, exceeding its original guidance of 8,000 EVs for Q1 2025 with 8,640 cares delivered. Late last year, Rivian also passed a significant milestone, achieving positive gross margins for the first time in company history.
Though acknowledging that the full impact of the tariffs remains unknown, top investor Gary Alexander thinks that Rivian is well-positioned to weather the storm.
“Rivian may be poised to thrive amid the escalating trade war, especially with the company’s U.S.-based manufacturing and no exposure to China or Europe sales,” predicts the 5-star investor, who is among the top 3% of TipRanks’ stock pros.
Alexander highlights Rivian’s domestic manufacturing footprint as a major buffer against potential trade barriers. And with all its sales currently focused on the U.S. and Canada, Rivian remains largely insulated from global disruptions.
Internal developments, such as improving margins and the upcoming production of the R2 model – scheduled to start in 2026 – are also giving Alexander confidence in Rivian’s prospects.
“One of the most important long-term indicators that has me enthusiastic on Rivian is its continued progress in gross margins,” adds Alexander.
On that note, the R2’s Bill of Materials is about 95% complete, and is expected to represent roughly half the costs of the current R1 model. This should allow Rivian to continue improving its margins, according to the investor.
Therefore, despite the uncertainties, Alexander is not hedging one bit. In fact, he’s all in on Rivian.
“Stay long here and use the drop as a buying opportunity,” concludes Alexander, who rates RIVN stock a Buy. (To watch Gary Alexander’s track record, click here)
Wall Street, however, isn’t quite as enthusiastic. Analysts are still riding the brakes, with 14 Holds outweighing just 6 Buys and 3 Sells, leaving Rivian with a consensus rating of Hold (i.e., Neutral). That said, the average 12-month price target sits at $13.70, implying potential upside of 16% from current levels. (See RIVN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.