What comes to mind when you hear the term "value stock"? Few investors would immediately think of any electric vehicle (EV) manufacturer, not to mention an unprofitable one like Rivian Automotive (RIVN 2.50%).

Yet in an industry that's still growing and evolving, value seekers might choose to cut Rivian some slack. Defining "value stock" in the EV space may require an extra measure of flexibility, with the bull case for Rivian stock contingent on progress rather than perfection. Let's learn more.

Rising from the ashes

Rivian stock ended 2023 on a strong note, jumping from $17 to $23 and change in December. Prior to that, though, shares were down 90% from their all-time highs.

It's a textbook example of the market losing interest in unprofitable start-ups that gained favor in 2021, when low interest rates fueled speculative fervor. Yet, now that the market is betting on the Federal Reserve slashing interest rates in 2024, Rivian may gradually return to investors' good graces.

Indeed, there are reasons for the market to forgive Rivian for being unprofitable. The automaker beat Wall Street's EPS estimates for the past seven quarters. Plus, Rivian lifted its full-year EV production forecast from 50,000 units to 52,000, and then 54,000.

Looking toward the future, Rivian is busy working on its upcoming Georgia manufacturing facility, where the company anticipates an annual EV production capacity of "400,000 units when fully complete."

With each fresh development, open-minded investors have an opportunity to see Rivian's potential value in another way than traditional metrics like P/E ratios. For example, Rivian could develop an ongoing revenue source as the automaker builds out its Adventure Network DC fast-charging sites; recently, Rivian started to automatically bill customers for using these charging stations.

On top of all that, Rivian made a move in 2023 that could spur demand for the company's vehicles: introducing leasing options for Rivian's R1T electric pickup truck in a handful of U.S. states. Leasers sometimes become outright buyers when they learn to like a vehicle, so this strategy may turn reluctant Rivian drivers into lifelong customers.

Now Rivian has two giant customers

Can value stem from a company's association with gigantic, iconic businesses? It's a thought worth considering, as Rivian just added a new customer and thereby boosted its revenue-generating prospects.

2023 was already shaping up to be a banner year for Rivian when the automaker started rolling out its first electric delivery vans in Germany for Amazon (NASDAQ: AMZN). At the time, some investors may have wondered whether Rivian would, or even could, make similar deals with other famous firms.

As it turns out, the answer is definitely yes, as Rivian ended 2023 with the announcement of a team-up with AT&T. While Rivian's press release doesn't specify the number of vans AT&T plans to purchase, it does state that AT&T "expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet in early 2024."

Even beyond the revenue that AT&T's purchase order(s) will provide to Rivian, the automaker also has an opportunity to build its reputation here. The fact that Amazon and AT&T chose to build their fleets with EVs from Rivian and not, say, Tesla or Lucid Group speaks volumes. Besides, the evident non-exclusivity of Rivian's arrangement with Amazon suggests that the door is open to more wheeling and dealing for Rivian.

Amid this encouraging sky's-the-limit backdrop, Rivian stock certainly feels like a great value, even if traditional metrics can't back this up. Only time will tell whether the shares are actually a bargain at their current price, but in light of Rivian's savvy strategies and potent partnerships, the company's value may truly be in the eye of the beholder.