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Bet on Renewable Energy With Rivian Stock

Electric vehicle startup Rivian Automotive (NASDAQ:RIVN) is truly unafraid to disrupt the automotive market as we know it. The company is preparing to build a large-scale wind turbine in Normal, Illinois. Not only that, but Rivian is opening three fast-charging locations in Colorado and California. For a high-conviction holding that’s bound to benefit from America’s electrification build-out, RIVN stock is an obvious choice.

Investing in EV startups might feel like a risky proposition during economically uncertain times. Granted, there’s risk involved — and you definitely don’t want to commit your entire portfolio to Rivian shares.

But there’s no need to sit idly and let the EV revolution pass you by. Even beyond producing Rivian’s sleek and powerful EVs, the company is proving that there are multiple paths to forge in the clean energy market.

What’s Happening With RIVN Stock?

Admittedly, it has been a bumpy road for Rivian’s shareholders. What was once a $170 stock is now worth less than $40. As a result, it requires a great deal of faith and conviction to hold RIVN stock.

Shareholders will also have to accept the reality that Rivian’s joining a growing group of U.S. businesses implementing job cuts. It’s been revealed that, due to inflation and other economic factors, Rivian is planning to reduce 6% of its workforce.

However, there may be some positive news on the horizon. In the U.S. Senate, Sens. Chuck Schumer and Joe Manchin have hammered out a proposal which would include extending a $7,500 tax credit for new EV purchases and a $4,000 tax credit for used EVs. There’s no guarantee that this proposal will become the law of the land, but it’s a step in the right direction and could benefit Rivian’s bottom line.

Getting Wind of Rivian’s Clean-Energy Plans

Rivian’s Illinois manufacturing plant has been busy lately, to put it mildly. There, the company produced 4,401 vehicles during the quarter ending June 30, 2022. So, Rivian appears to be on track to fulfill its annual delivery forecast of 25,000 vehicles.

Even while Rivian’s busy building EVs, there are other exciting things going on in the town of Normal. Indeed, there’s nothing normal about Rivian’s clean-energy ambitions as the automaker plans to build a large-scale wind turbine at its Illinois manufacturing site.

The purpose is to provide clean energy that will enable new R1 model vehicles to be powered by renewables for their first charge. Amazingly, the Normal wind turbine is designed for a capacity of at least 2.8 megawatts of power. It should be able to generate approximately 10 million kilowatt-hours of electricity per year, which would be enough to power 890 average U.S. homes.

Meanwhile, on the West Coast, Rivian is facilitating the build-out of America’s EV infrastructure. In particular, Rivian is introducing three fast-charging sites in the states of Colorado and California.

Apparently, Rivian’s strategy is to establish fast-charging stations in high-traffic areas. As Rivian Senior Director of Energy and Charging Solutions Trent Warnke explained, “In addition to scenic or off-the-beaten-path destinations, our fast charging rollout is designed to ensure travelers have places to charge along major transportation corridors coast to coast.”

What You Can Do Now

Some EV makers are content to just build the vehicles, ship them out and call it a day. Rivian clearly has broader ambitions. From wind turbines to coastal fast-charging stations, it seems that the company is waist-deep in the vehicle electrification movement.

It’s a commitment that sets Rivian apart, and you’ll have to be on board with this if you’re planning to hold RIVN stock for the long term. The upside potential could be profound, though, so feel free to ride along with this unabashed automotive disruptor.

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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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