How to Buy Rivian (RIVN) Stock

Invest in Rivian stock today with Interactive Brokers as your trusted online brokerage.

With the surge in popularity of electric vehicles, many investors are eager to dive into the stocks of promising companies like Rivian (RIVN). Since its IPO, Rivian has captivated the attention of investors and enthusiasts alike with its innovative electric trucks and SUVs, boasting eco-friendly technology and a commitment to sustainable practices.

However, as exciting as it is to consider adding RIVN stock to your portfolio, the complexities of stock buying can leave you feeling uncertain and potentially lead to costly mistakes. This guide will help you navigate the ins and outs of buying Rivian (RIVN) stock effectively.

How to Buy Rivian Stock

If you already know how to buy stock, you can press on. If not, you can use this list of simple steps to decide which stocks to buy, how many shares you need and how to complete the order.

Step 1: Pick a Brokerage

You can trade through some of the largest online stock trading brokers: Charles Schwab, E*TRADE and Fidelity, although each broker has different requirements for participation. Here are some factors you have to consider when choosing a brokerage:

• Regulatory compliance: Ensure the brokerage is registered with relevant regulatory authorities, such as the SEC in the U.S. or FCA in the UK.
• Trading fees and commissions: Analyze the fee structures of different brokerages, including commission rates, spreads and any other associated costs.
• Trading platform and tools: Look for a user-friendly trading platform that offers advanced trading tools, charting capabilities and technical indicators.
• Customer support: Evaluate the quality and availability of customer support. Look for brokerages that offer multi-channel support, including live chat, phone and email.
• Research and educational resources: Choose a brokerage that provides quality research reports, market analysis, educational materials and webinars.

Step 2: Decide How Many Shares You Want

Once you have met all of the broker’s requirements and have answered the relevant questionnaires, you can state the number of shares you wish to purchase within the limit of the funds in your account.

Step 3: Choose Your Order Type

Choosing the right order type affects the likelihood of executing the trade at the desired price and can influence the overall investment strategy. Here are some of the most common order type examples:

• Market order: This is the most common type of order where a trader buys or sells a stock immediately at the current market price. It ensures execution but does not guarantee the exact price.
• Limit order: A limit order allows traders to specify the maximum price they are willing to pay when buying or the minimum price they are willing to accept when selling. This order will only execute at the specified price or better.
• Stop order (or stop-loss order): This is an order to buy or sell a stock once it reaches a certain price, known as the stop price. A stop order transforms into a market order when the stop price is met.
• Stop-limit order: This combines features of both stop orders and limit orders. When the stop price is reached, the stop-limit order becomes a limit order, ensuring that the trader has more control over the execution price.
• Trailing stop order: This is a type of stop order that allows traders to set a stop price at a certain percentage or dollar amount below the market price. As the market price rises, the stop price rises, helping to lock in profits while limiting losses.

Step 4: Execute Your Trade

Execute your trade and check your account dashboard. Your trade should be reflected instantly and you can make your next investment at any time with the funds remaining in your account.

Best Online Stock Brokers

Below are some of the best brokers to get you started.

Rivian Financial History

Rivian Automotive was founded in 2009 by R.J. Scaringe with the purpose of developing products, vehicles and services with a focus on sustainable transportation. The company currently has several manufacturing locations that include Plymouth, Michigan; Carson, San Jose; Irvine, California; and Normal, Illinois. The company also has an advanced manufacturing office in Surrey, England. 

The 2.6 million square foot Normal, Illinois, facility has undergone a massive $750 million renovation to begin the manufacture of battery packs, in addition to battery-powered trucks, SUVs and vans that include the company’s R1S SUVs and R1T pickup trucks. 

The Rivian vehicle line started selling in 2022 and had a base price of $68,000 to $72,500. These vehicles were semi-autonomous and delivered a driving range of 400 miles per charge. 

While the company has been in operation since 2009, major funding began with a corporate investment round of $700 million led by Amazon (NASDAQ: AMZN) in February 2019. The company had previously received debt financing of $250,000 in 2011, $1 million in 2012 and $200 million in 2018. 

Since the Amazon corporate equity financing round, the company has received an additional corporate investment of $500 million in April 2019 from the Ford Motor Company (NYSE: F), which brought Rivian’s valuation to $4.5 billion. The next corporate financing round was in September 2019 and involved an investment of $350 million by privately-held Cox Enterprises subsidiary, Cox Automotive. 

By December 2019, the company had raised another $1.3 billion in private equity from 4 major sources. These were Ford, T. Rowe Price Group Inc. (NASDAQ: TROW), Blackrock (NYSE: BLK) and Amazon. 

Rivian raised $2.5 billion from a group of 7 investors in July 2020 and another $2.7 billion from 8 investors in January 2021. Both investment groups were led by T. Rowe Price and included other major names like Blackrock, Soros Fund Management LLC., the Fidelity Management and Research Company and Coatue Management LLC. 

Rivian stock chart since its IPO in November 2021 up to August 2024. Source: TradingView

Rivian Potential

Many analysts and automotive industry professionals consider Rivian a significant rival to Tesla in the EV market. Also, given the impressive list of its high-profile investors, the potential for Rivian’s IPO could be significant to anyone fortunate enough to buy the shares on the first day of trading. 

Amazon, for example, is one of the company’s initial investors and it currently has Rivian delivery vans in use. It also expects the delivery of 100,000 by 2030.

While no guarantees exist for making money on newly issued stock, Rivian’s business does show considerable potential for future growth and many investors have seen their IPO stock turn into a profitable investment over time. Rivian debuted on November 10, 2021, trading at $78 per share. As of December 8, 2021, the stock had risen to over $121 per share and it was trending up. However, the market is fickle, and that figure fell as low as below $14 in August of 2024.

Is Rivian Stock for You?

Investing in Rivian stock can be a promising opportunity if you're to enter the electric vehicle market. With its innovative technology, commitment to sustainability and growing demand for electric vehicles, Rivian has positioned itself as a competitive player in the automotive industry. As with any investment, it is crucial to conduct thorough research, understand the risks involved and consider your financial goals before making a purchase.

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