Rivian Automotive (NASDAQ: RIVN), an electric vehicle manufacturer, is effectively following the business model of its main competitor, Tesla (NASDAQ: TSLA). Rivian specializes in electric SUVs, pickup trucks, and delivery vans, aiming to carve out a niche in a competitive auto market.
Key partnerships with Amazon (NASDAQ: AMZN) for delivery trucks and Volkswagen (OTC: VWAGY) for funding and technology collaboration are pivotal in supporting Rivian’s growth. The company has achieved a gross profit in late 2024, but significant operational costs remain, hindering consistent profitability.
In an effort to broaden its customer base and enhance profitability, Rivian plans to launch a mass-market SUV within the year. Despite experiencing a decline in share value from its early highs, the company’s strategic collaborations may position it well for future growth.