If you're looking at the electric vehicle (EV) space, you have probably examined Tesla very closely. That makes sense, given that the company basically created the EV market, forcing established automakers to take electric vehicles seriously for the first time.
But Tesla is a fairly mature business at this point. If you have $1,000 to invest, you might want to consider a company that seems to be successfully following Tesla's playbook. That stock is EV truck maker Rivian (RIVN +2.08%).
What does Rivian do?
Rivian makes electric vehicles, just like Tesla and, at this point, just about every major automaker. But Rivian isn't trying to be all things to all people -- it's highly focused on making EV trucks and SUVs. This is a niche that allows the company to differentiate its product to some degree.
Image source: Getty Images.
There are two notable things going on behind the scenes here. Rivian has inked key partnerships to support its business. One is with online retailer Amazon for delivery trucks. This relationship has been a vital support early in Rivian's existence, as it provided both a customer for the company's technology and a proof of concept for the world. In fact, when Rivian ran into supply issues for its consumer vehicles after a factory upgrade in 2024, it was able to shift production to Amazon trucks to keep its business moving forward.
Rivian also has an important partnership with Volkswagen, which is providing money that Rivian is using to invest in its technology. In exchange, Volkswagen will get to use Rivian tech in its vehicles. This is a win/win, since Volkswagen hasn't been as aggressive as its peers with EVs, and it will give Rivian a customer for its technology. One of Rivian's key goals is to sell its technology to other companies.
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Rivian is about to follow Tesla in an important way
All that said, Rivian has been following Tesla's basic playbook. It started out with very expensive consumer models. High-end trucks are a great offering, and Rivian has award-winning trucks, but the market is a bit limited. There are only so many people who can afford to buy expensive vehicles. The benefit of starting at the high end is that it brings in more revenue during the start-up phase, when costs are extremely high. After all, Rivian, like Tesla, had to build a capital-intensive manufacturing business from the ground up.
That was the key goal through 2023. In 2024 and 2025, however, Rivian has shifted gears to reducing costs and working toward profitability. That process has involved, as noted above, improvements at the company's factory. Costs have come down, with Rivian producing a gross profit in the fourth quarter of 2024 and the first quarter of 2025.
NASDAQ: RIVN
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This is where the next big goal comes in. Like Tesla, Rivian is now looking to introduce a truck priced for the mass market, called the R2. With costs coming down, the big goal is to sell more trucks. That will allow Rivian to spread its manufacturing costs over more vehicles and further help it work toward a sustainable profit.
Given the EV maker's strong execution so far, it seems highly likely that it will achieve this next goal. Helping it along is that partnership with Volkswagen, which is investing billions in Rivian with each milestone it reaches. That makes achieving the next goal that much more likely.
Rivian is a high-risk investment
To be fair, Rivian is still losing money, and it will likely continue to do so for a while longer. So this isn't a stock that conservative investors will likely want to buy. But if you are a bit more aggressive, Rivian looks like it could be on the cusp of a very important business shift. That makes it one of the best EV stocks to invest in, with $1,000 netting you around 70 shares of this exciting auto industry upstart.
