It's been a rough year for electric vehicle (EV) stocks. Nearly every EV maker has seen its valuation plunge. Year to date, Tesla stock has fallen by nearly 40%. Lucid Group has seen its shares dip by around 30%. Rivian Automotive (RIVN -2.15%), meanwhile, has also seen its shares plunge by around 30% since early January.
Across the board, most growth stocks have seen their stock prices fall this year. But many EV stocks are seeing their valuations plunge even as their growth rates start to pick up. If you're looking for cheap growth stocks, Rivian could be the perfect fit for you. There's one reason in particular to get excited now.
Rivian's growth is ready to spike
When Tesla introduced its Model 3 and Model Y vehicles, its revenue grew by leaps and bounds over the subsequent years. That's because these were the company's first "mass-market" models. That is, these were the first vehicles that the masses could afford, with starting prices under $50,000. Since that point, it's been every EV maker's goal to move into the mass-market category.
After years of investment, Rivian could be less than 12 months away from reaching that inflection point. It has three new mass market models currently in the works: The R2, R3, and R3X. Like Tesla's mass-market vehicles, all have a price point under $50,000. Rivian management claims that materials sourcing for the R2 is around 95% complete, with production slated for early 2026. After the R2's release, the R3 and R3X models are expected to follow.
RIVN PS Ratio data by YCharts.
Despite nearing this growth inflection point, Rivian shares trade at their lowest levels in years at just 2.2 times sales. That's significantly higher than competitors like Tesla and Lucid.
Over the next three years, Rivian should more than double its vehicle lineup with three vehicles capable of reaching millions of new buyers. It'll take some time for this story to play out, but the recent correction just gave shares the room to truly soar should production and sales milestones be reached over the coming years.
