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How to Buy Rivian Stock (RIVN)? Step-by-Step Guide 

how-to-buy-rivian-stock

Are you considering investing in Rivian Automotive? We’ve got you covered. This guide will analyze the most important facts about the electric vehicle (EV) manufacturer, as well as explain how to buy Rivian stock. In addition, we will go through the risks involved and provide you with an overview of the most reliable brokers.


What is Rivian?

Another early backer was Ford (NYSE: F), which invested $500 million in April 2019 when the two companies announced plans to develop electric trucks together. Unfortunately, those plans never came to fruition. However, Ford kept its investment in place.

It’s worth mentioning that in the 2021 fiscal year, Rivian invested over $1.8 billion in research and development (R&D), up 141.51% from its previous year’s investment of $766 million.

Rivian#s research and development expenses in 2021. Source: Statista.com

Rivian IPO: when did the company go public? 

Rivian became a publicly-traded company through an initial public offering (IPO) in November 2021, selling 153 million shares at an initial share price of $78, raising $12 billion and valuing the company at $66.5 billion, making it the seventh largest U.S. IPO on record.

Largest U.S. IPOs to date. Source: Statista.com

The Rivian stock symbol is RIVN, and it trades on the NASDAQ exchange. You can acquire Rivian stock via multiple brokers, which we will overview later in this guide.

The bulk of Rivian stock (69.35%) is owned by institutional investors. The largest shareholder is Amazon, which holds a 17.29% stake in the company. 

Step-by-step process on how to buy Rivian stock

Rivian is a publicly traded company, meaning you can buy Rivian stock through a broker. The steps involved in purchasing RIVN shares are outlined in the following section in detail.

Step 1: Choose a broker

To buy Rivian stock online, you’ll need a brokerage account. Several platforms are available, but the right one will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When evaluating brokers, consider the following features:

  • Fees: Brokerage fees is a type of fee collected by brokers to execute your transactions or provide specialized services. However, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
  • Security: Pick a reliable broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC);
  • Trading tools: Active traders may want more out of their brokerage accounts. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s usually a good idea to look for an easy-to-use platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
  • Access to market data: You should search for a platform that gives you access to solid market research and reporting tools to help you trade confidently with updated data;
  • Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; particularly helpful for investors who don’t have limited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy. 

Also, traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors

Where can I buy Rivian stock (RIVN)?

Access to the financial markets is easy and inexpensive, thanks to various online brokers. However, choosing the right broker optimized for your needs (investing goals, educational tools, trading style) is paramount for a successful trading experience. 

To securely invest in Rivian and buy RIVN stock, consider these brokers:

1. Revolut

  • Commission-free stock trading;
  • Invest in 1,500+ global companies’ shares;
  • Fractional shares available;
  • Real-time updates;
  • No account minimum. 

2. Interactive Brokers (IBKR)

  • Commission-free stock trading;
  • Global stock-trading on 90+ market centers;
  • Fractional shares available;
  • Extra income on fully paid shares;
  • Lowest financing rates for margin accounts in the industry;
  • No account minimum. 

3. eToro

  • Commission-free stock trading; 
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • User-friendly platform.

4. Degiro

  • Commission-free stock trading; 
  • Access to more than 50 exchanges across 30 countries;
  • Innovative, user-friendly trading platform;
  • No account minimum.

5. Robinhood

  • Commission-free stock trading; 
  • Extra income on the shares you own;
  • Fractional shares available;
  • Exhaustive educational resources;
  • No account minimum. 

6. Sofi 

  • Commission-free stock trading;
  • Fractional shares available;
  • Real-time investing news and curated content;
  • Margin investing;
  • $1 account minimum.

Step 2: Fund your account

Once you have selected a broker, the next step is funding your trading account. Remember, it can sometimes take up to three days for the funds to be deposited. 

Step 3: Research the company 

When investing your money in the market, doing your research is crucial. If you want to buy Rivian stock, keep an eye out for the current Rivian stock price, as well as past price data, overall valuation, and company announcements regarding new launches or relevant news stories. 

The best place to start your research on a stock is to go through its public filings with the SEC. For example, Rivian annual and quarterly reports can be accessed directly from the SEC website, providing a comprehensive overview of the company’s financials. In addition, letters to shareholders can be found on Rivian’s investor relations page, and recent press releases are shown on Newsroom.

If you’re relatively new to investing or have a low tolerance for risk, there may be better choices than a new company like Rivian for your portfolio. On the other hand, if you genuinely believe in the company’s mission and are okay with weathering the ups and downs of a young company, then buying in early could be the right choice for you.

Step 4: Decide how much you want to invest

After you’ve done your research and determined that Rivian is the right stock for you, you’ll need to decide how much you want to invest.

The amount of money you invest ultimately depends on the price and number of shares you want to buy. If the share prices of stocks you’re interested in are financially out of reach, you can also explore fractional shares. Fractional shares allow you to purchase a portion of a stock instead of the full share.

Because investing can have unpredictable returns, it’s crucial only to invest what you can afford to lose and to be mindful of your risk appetite.

Step 5: Place your order and buy Rivian stock

Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy Rivian stock and how much you can invest, and they’ll do it on your behalf. If you’re using a brokerage account, simply log in and enter the ticker symbol RIVN in the search bar. 

There are a few different execution options to choose from, including:

  • Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
  • Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy Rivian stock at $27 or lower. You would then set the limit price at $27, and the order will only execute when the stock reaches the set price or lower;
  • Options contract: Options speculation allows for leveraged positions in a security at a fraction of the cost of the underlying asset. A call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. Derivative products can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts. 

Step 6: Monitor your investment

While “set it and forget it” is a solid strategy for a diversified portfolio of ETFs, for single stocks like Rivian, investors should keep a close watch on press releases, company health indicators such as debt and revenue, industry performance as well as overall market conditions. Then, depending on your financial goals, use that knowledge to reassess whether it’s best to hold onto the stock or sell it. 

You may also want to track competitors’ performance in the EV space, such as Tesla (NASDAQ: TSLA) and Lucid Motors (NASDAQ: LCID).

Should I buy Rivian stock?

Besides looking at Rivian’s fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts. 

This gauge displays a real-time technical analysis overview for your specified timeframe. It can be a valuable technical analysis tool for many traders by simplifying trading decisions by demonstrating the real-time recommendations of popular technical indicators such as moving averages and oscillators.  

Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.

Common mistakes to avoid when investing in stocks

Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:

  1. Not performing your due diligence on the stock;
  2. Having unclear financial goals;
  3. Attempting to time the market;
  4. Failing to diversify;
  5. Letting your emotions rule the investment decision-making process.

How to sell Rivian stock?

If Rivian is performing differently than you’d expected or you’ve reached the financial goal you set when you first invested in the company, selling your shares is easy.

If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, you can simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.

Pros and cons of buying Rivian stock

All investments carry a degree of risk. Despite powerful backers and high levels of buzz, there are some potential concerns about Rivian.

Pros

Pros

  • Big backers: Rivian has some powerful backers, including Amazon, which owns around 17% of the company, and Ford, which has a roughly 9.7% stake (as of May 2022); 
  • A growing EV market: As the world moves towards more sustainable options, the auto industry will also experience a significant shift towards electric. For example, the EV market in the U.S. broke records in 2021, reaching 607,600 light electric vehicle sales, approximately 83% more than in 2018. 
Cons

Cons

  • Technical issues with cars: Rivian has had a few instances of recalls of vehicles, most recently (October 2022) of almost 13,000 electric pickups, vans, and SUVs;
  • No dividends: Rivian does not pay dividends to its stockholders;
  • The stock has plummeted since IPO: The shares of Rivian havelost around 62% (as of November 2022) of their value from their IPO price amid intense cost pressures and struggles to ramp up production; 
  • Fierce competition: While Tesla has dominated the EV market, many new products will be entering the market simultaneously with Rivian’s offerings;
  • The target market may not be ready: Rivian targets the SUV and pickup truck market, while other EV makers have rolled out sedans first. Buyers of these types of vehicles could be less receptive to EVs;
  • Expensive product: The starting price for an R1T pickup truck is $73,000

In conclusion 

Since entering the stock market in November 2021, Rivian has yet to live up to the hype, shedding well over half of its value since the IPO.

However, Rivian presents an intriguing investment opportunity, particularly in these early days. If you’re willing to take on some risk, investing in Rivian could prove lucrative, as the company is expected to revolutionize the automotive industry with its EVs, breaking into markets largely untapped.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about Rivian

What is Rivian?

Rivian is a manufacturer of electric vehicles and EV accessories. The company produces five-passenger pickup trucks and sports utility vehicles, as well as electric delivery vans in collaboration with Amazon. 

Who owns Rivian?

According to Nasdaq data, Rivian is owned by 69.35% of institutional shareholders as of November 23, 2022. Amazon holds the most significant stake at 17.29%

How to buy Rivian stock?

Rivian went public through an IPO in November 2021, and its stock is available on the NASDAQ exchange under RIVN, which means you can buy shares of Rivian through your brokerage account. 

Is Rivian a good stock to buy?

Whether the stock is a suitable investment for you should be based on your risk tolerance, portfolio size, and financial goals, as well as your experience in the markets. Rivian could have high potential as it continues to ramp up production with the backing of Amazon. But it remains a high-risk growth stock with other competitors currently ahead of them. So always conduct your due diligence before trading. Note that past performance doesn’t guarantee future returns. 

Where can I buy Rivian stock?

You can buy Rivian stock at various online brokers such as Revolut, Interactive Brokers (IBKR), eToro, Degiro, and Robinhood. 

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