It’s not easy to pick high-quality electric vehicle (EV) stocks, especially when the field is getting so crowded and competitive. However, EV manufacturer Rivian Automotive (NASDAQ:RIVN) stands out as one of the most promising automakers for 2024. Indeed, the coming year could bring substantial returns for forward-thinking RIVN stock investors.
We’ve already witnessed bullish price action with Rivian stock in the first half of December. Could this be a precursor to a vertical share-price move in the new year? Anything’s possible, especially in light of Rivian Automotive’s exciting deal with a telecommunications giant.
2023 Ends With Huge News for Rivian Automotive
Surprisingly, Rivian Automotive is capping off 2023 with what might be the automaker’s biggest news item of the year. Specifically, Rivian entered into an agreement to help build out AT&T’s (NYSE:T) commercial fleet.
To be more precise, AT&T “expects to begin adding… Rivian Commercial Van and R1 vehicles to its fleet in early 2024.” This will help the telecom company achieve “carbon neutrality by 2035.”
This looks like a win-win scenario for both companies. Not only will the deal with AT&T bring revenue to Rivian Automotive, but it should bolster the automaker’s reputation.
Besides, the arrangement with AT&T proves that Rivian Automotive isn’t overly dependent on its fleet-electrification deal with Amazon (NASDAQ:AMZN). Now, Rivian has another headline-grabbing deal besides its 100,000-electric-van agreement with Amazon.
Why Some RIVN Stock Traders Might Be Worried
To be fair and balanced, I can’t only tell you about the bullish argument for Rivian stock. I must acknowledge a concern about the EV industry in general since it indirectly pertains to Rivian Automotive’s growth prospects in 2024.
Here’s a recent news item that shook EV stock investors recently. Ford (NYSE:F) signaled plans to cut the production pace of its F-150 Lightning EV model units from 3,200 per week to just 1,600 per week. This worrisome news item comes courtesy of a memo obtained by Automotive News.
In addition, Ford reportedly told Yahoo! Finance that the company is “matching production to customer demand.” In other words, Ford is cutting its F-150 Lightning assembly pace in half because there’s not much demand from the customers.
This relates indirectly to Rivian Automotive since Ford may be signaling a slowdown in the U.S. EV market. However, it doesn’t mean you have to give up on RIVN stock completely. The best strategy is to monitor Rivian’s EV production and delivery figures in the coming quarters. If there’s growth in these areas, then you don’t need to obsess over Ford’s vehicle production goals.
Fast-Track Your Portfolio’s Returns in 2024 With Rivian Stock
Rivian Automotive is one of the most exciting and promising EV makers in America right now. On the other hand, it’s a crowded field and Ford’s remark about F-150 Lightning “customer demand” is notable.
Yet, Rivian Automotive now has agreements with two corporate giants, Amazon and AT&T. This is a great way for Rivian to finish 2023, and the new year offers the prospect of growth for the company and sizable gains for RIVN stock. So, feel free to give Rivian Automotive a chance and take a small but confident share position for 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.