Rivian could be one of the cheapest AI stocks on the market today.
Like many electric vehicle (EV) stocks, shares of Rivian Automotive (NASDAQ: RIVN) are down more than 15% since 2026 began. But soon, the company should start realizing several major growth catalysts.
If Rivian can execute on its upcoming growth catalysts, shares could explode in value. And given the company's cheap valuation, it won't be a surprise if Rivian becomes a true "once-in-a-decade" investment opportunity.
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But before you jump in, it's important to understand the two growth catalysts in question.
Tesla has a market cap well north of $1 trillion. How did it become one of the biggest companies in the world? The answer, at least in part, surprisingly concerns the launch of two models: the Model 3 and the Model Y.
Tesla launched the Model 3 in 2017. Model Y deliveries began in 2020. In 2017, Tesla had a market cap of around $50 billion. By 2020, the company's valuation had surpassed $600 billion. In the following years, that valuation surpassed $1 trillion.
Today, more than 90% of Tesla's automotive sales come from these two models. Sales are so successful, in fact, that Tesla axed two legacy models, the Model S and Model X, after 14 years of consecutive production.
Tesla's valuation today includes many growth catalysts that aren't related to car manufacturing. But one thing is clear: Launching affordable vehicles put the company's growth on overdrive. This is exactly what Rivian hopes its R2 SUV -- its first affordable model that should begin deliveries to customers soon -- will generate.
Priced under $50,000, Rivian's R2 model could eventually rival Tesla's sales of both the Model 3 and Model Y. Many of the most popular vehicles in the world today are SUVs. And in recent years, Tesla has faced very limited competition from pure-play EV makers at the more affordable end of the market.
As with Tesla's sales ramp-up, it may take a few years for Rivian's production and demand to scale. But the upside potential is clear.
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