While the S&P 500 has soared more than 18% year to date, shares of Rivian (RIVN 6.10%) have raced the other way. Since the start of the year, the electric truck manufacturer's stock has plunged almost 10%.

But it's not only bears that are paying attention to Rivian stock. There are plenty of electric vehicle (EV) investors who are convinced that Rivian's stock shouldn't be forsaken and are willing to park shares of Rivian in their portfolios. Before doing so, however, these bulls should idle their engines and recognize some important points before hitching a ride with Rivian.

Driving in a new direction

At this time last year, Rivian bulls held fast to the idea that the company's supply agreement with Amazon for 100,000 electric delivery vehicles (EDV) was an auspicious sign that its vehicles were in high demand for use in logistics applications. Earlier in November, Rivian announced that it was offering commercial vans to companies in the U.S. Beginning with small-scale fleet deployments in 2024, Rivian plans on ramping up deliveries in 2025.

Another new look for the company is its decision to offer a leasing option. Available to customers in 14 states, Rivian's leasing program applies to the company's R1T vehicles that are found in its existing inventory. According to EV industry website Electrek, Rivian will open up the leasing option to custom order vehicles in the future. The company's decision to offer a leasing option will appeal to customers who may be enthusiastic about EVs but unsure about whether the vehicles are right for them and are, therefore, hesitant to purchase the vehicles outright.

Georgia is on Rivian's mind

To the delight of Rivian shareholders, the company revealed in its third-quarter 2023 presentation that it was hiking its 2023 vehicle production guidance to 54,000 vehicles -- a promising sign for sure. But for Rivian to achieve real success, it will have to produce considerably more vehicles annually. And that's where the Peach State comes in.

The company's plan to build a new production facility in Georgia -- a facility that is expected to have an annual production capacity of 400,000 vehicles -- just took a significant step forward as the state of Georgia reached an agreement with the company to proceed with development. Rivian plans to produce its new R2 vehicle, a less expensive model of SUV than the currently available R1, at the facility in Georgia.

Successful development of this new facility -- and subsequent increases in production volume -- is vital to the company's long-term prosperity. In its Q3 2023 letter to shareholders, for example, management noted, "Increasing our production is one of the primary levers in our path to profitability."

Keeping profits in perspective

To its credit, Rivian has achieved significant year-over-year growth on the top line. Reporting revenue of $995 million through the first nine months of 2022, Rivian has booked sales of $3.1 billion through the same period in 2023. The bottom line, however, is still inked in red. Through the first three quarters of 2023, Rivian has reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative $2.9 billion. Management, moreover, forecasts 2023 adjusted EBITDA of negative $4 billion.

It's highly unlikely that Rivian will generate a profit before it develops its new production facility in Georgia and scales up operations. With the facility scheduled to be completed in 2026 and it being unlikely that the company will immediately generate profits once it's completed, it's probable that investors are looking at several years of the company remaining unprofitable.

Is now a good time to ride with Rivian?

While there have been some encouraging signs that Rivian is on the right track, it's important for potential investors to recognize that the company is still in the very early innings of its story -- and plenty of risks still remain. For one, developing a $5 billion production facility in Georgia is no simple task. Plenty can go wrong, and if it does, it could forestall the company's progress considerably. Plus, those considering clicking the buy button must appreciate the importance of being patient, as profits may not emerge for several years.

All this isn't to say that picking up shares of Rivian is foolish. Rather, investors must be comfortable with the associated risks and allot their position in the stock accordingly.