Electric vehicle (EV) manufacturer Rivian Automotive (NASDAQ:RIVN) has definitely been on the fast track to success lately. For instance, Rivian recently entered into an agreement to help build out AT&T’s (NYSE:T) commercial fleet. Yet, that’s not the only reason to buy RIVN stock in 2024.
Rivian Automotive’s reputation is rock-solid now that the company has fleet-electrification deals with Amazon (NASDAQ:AMZN) and AT&T. Plus, Rivian is getting ready to put an affordable EV model on the roadways. As the positive catalysts keep coming, Rivian stock could be unstoppable in the new year.
International Trade Tensions Could Actually Help RIVN Stock
Usually, tensions between nations are problematic for private businesses. However, there’s a potential new tariff that may turn out to be positive for Rivian Automotive.
As InvestorPlace News Writer Eddie Pan reported, the U.S. government is considering raising tariffs on Chinese EVs. Currently, Chinese EVs are subject to a 25% tariff plus a 2.5% auto import tariff.
If the U.S. increases these tariffs, that would be bad news for Chinese EV manufacturers who export vehicles to America. On the other hand, it wouldn’t be a problem for Rivian Automotive, which produces its R1T and R1S EV models at the company’s manufacturing facility in Normal, Illinois.
Looking ahead, Rivian Automotive’s current and prospective investors should monitor the news for further developments on this story. So far, it looks like the U.S. government expects to announce a decision on possible tariff increases on China-made EVs in early 2024.
Rivian Automotive Prepares for R2 Launch With Georgia Factory
There’s no guarantee that tariffs will boost Rivian stock in 2024. However, there’s another exciting news item to consider as Rivian Automotive prepares to eventually introduce an affordable EV.
Reportedly, Rivian Automotive plans to build its second EV manufacturing plant in Georgia. There, Rivian will produce its R2 vehicle model, which is expected to have a starting price between $40,000 and $45,000.
That’s significantly more affordable than Rivian Automotive’s R1S and R1T model EVs, both of which have starting prices over $70,000. If everything goes according to plan, Rivian will unveil its R2 model sometime in 2024.
Referring to reluctant EV buyers, Rivian Automotive CEO RJ Scaringe declared that the R2 model will “pull a lot more customers across that jump” than the R1S and R1T did. I tend to concur, as affordability is probably a sticking point for some prospective EV buyers.
Rev Up Your Engine With Rivian Stock in 2024
Deals with Amazon and AT&T put Rivian Automotive on the fast track in 2023. Entering into the new year, Rivian stock investors should be excited about the company’s Georgia EV production plant.
Plus, while potential U.S. tariffs on China-made vehicle imports may be controversial, they would certainly benefit Rivian Automotive and some other American automakers. So, don’t hesitate to add a handful of RIVN stock shares to your portfolio and prepare for a fast and furious 2024.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
