Prediction: Rivian Will Soar Over the Next 3 Years. Here's 1 Reason Why.

Looking for high-upside stocks? Then Rivian Automotive (NASDAQ: RIVN) is for you. There are few stocks with this much potential upside over the next few years. There are some things that need to go right for the company, but if management can execute, it's not hard to imagine Rivian becoming the next Tesla.

What exactly should you be paying attention to? One catalyst in particular will likely make or break the company's future.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

This will be the biggest event in Rivian's history

Early on in Tesla's history, it had only a few luxury vehicles in its lineup: the Roadster, the Model X, and the Model S. All sold for around $100,000 or more depending on the package. At this time, Tesla was known for its quality, but not necessarily its scale. Years down the road, however, Tesla released two mass market vehicles: the Model 3 and the Model Y. Both were priced under $50,0000, crossing a critical threshold that made its cars available to more drivers. It was then that Tesla hit several major inflection points, becoming the multitrillion-dollar company it is today.

Rivian is in a very similar position. Right now, the company has just two luxury vehicles, both of which are priced at around $100,000. But starting in 2026, management expects to begin shipping three new mass market vehicles: the R2, R3, and R3X. Like Tesla's mass market models, Rivian's new vehicles should also be priced under the $50,000 mark.

There will be plenty of roadblocks along the way. Rivian must continue to raise billions in additional capital to fund its factory infrastructure, plus get its new vehicles to market on time. Then it must maintain its reputation for quality, a factor that is far from guaranteed. But if Rivian can execute, there's reason to believe this electric car stock will follow in the footsteps of Tesla. Expect plenty of volatility in the meantime, but this is the ideal stock for aggressive growth investors willing to remain patient in exchange for a hefty potential payout.

Should you invest $1,000 in Rivian Automotive right now?

Before you buy stock in Rivian Automotive, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $800,876!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of December 16, 2024

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.