Is Rivian the Smartest Investment You Can Make Today?

Many growth stocks have struggled so far this year. Rivian (NASDAQ: RIVN) is no exception. Shares are down roughly 16% year to date, although the stock's volatility has shifted this figure around quite a bit.

The strange thing is that shares are dropping in value right as the company gears up for its biggest growth spurt in years. Could this be the smartest investment you make in 2025?

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Watch out for this growth inflection point

As an electric car stock, Rivian struggled in 2024 as the industry dealt with lower-than-expected sales growth. To be clear, electric vehicle (EV) sales still rose last year, but growth rates fell below most analysts' forecasts.

Without a well-known brand name like Tesla, or the near-term expectation for new model introductions like Lucid Group, Rivian has struggled for relevancy. But that struggle could be over within 12 months, creating the potential for big upside to the current stock price.

One of the biggest growth hurdles that EV makers face is making affordable, mass market vehicles a reality. Producing cheap cars typically requires scale, but the relatively small size of new automakers like Rivian and Lucid makes that difficult. Tesla addressed this challenge by first introducing a luxury vehicle with lower volumes and higher price points to establish the EV maker as a brand. Only after it achieved this initial scale did the company move into higher-volume, lower-price-point models.

Automakers like Rivian and Lucid have attempted to follow this proven plan for growth. Lucid just introduced its second luxury model earlier this year. But by many metrics, Rivian is a year or two ahead because it already has two luxury models on the market. Starting in early 2026, it also plans to begin shipping the first of three new mass market vehicles, all of which are expected to have a price point of under $50,000. That price point should unlock tens of millions of new buyers for Rivian's vehicles.

When you look at analyst expectations for growth this year, Rivian comes in dead last versus the competition, with just 8.3% revenue growth anticipated for 2025. Understandably, Rivian shares are priced the cheapest on a price-to-sales (P/S) basis, trading at just 2.3 times sales. But if you look ahead to 2026, this equation could flip. Mass market vehicles were the key to renewed growth for Tesla. So if you're willing to look beyond Wall Street's typical 12-month time horizon, you could foreseeably snap up Rivian shares at a discount before the next leg of growth arrives.

Should you perhaps wait a bit more before jumping in? The answer might surprise you.

RIVN P/S Ratio data by YCharts.

Should you buy Rivian stock today or in 2026?

It's reasonable to ask the question: If Rivian's growth won't return until 2026, should you wait until then to buy shares instead of waiting patiently for a year?

It's hard to buy growth stocks at a discount. That's because once sales growth returns, the market typically rerates shares to a higher valuation. To make the biggest profit, investors must buy shares before the rest of the market catches on. This typically requires buying well in advance of growth inflection points, waiting patiently for growth to return.

Will Rivian's growth spike in 2026? Nothing is for certain. But if Tesla's growth history is any indication, the release of mass market vehicles is a great recipe for doubling or even triple sales. At just 2.3 times sales, Rivian's stock is priced too cheaply should these growth rates arrive in 2026, or even 2027. This story will take time, but Rivian shares can certainly be considered a "smart" investment for patient growth investors looking to get an edge on the market.

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

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