The best EV stock to invest $500 in right now

If you believe that electric vehicles (EVs) are the future of the automotive industry, as I do, then you’ve probably spent some time trying to figure out which EV manufacturers to invest in. Is it better to go with an automotive stalwart or go with an electric vehicle startup with lots of potential upside?

You don’t have to choose either/or, of course, but if you only have $500 to invest right now, I think you’d be better off putting it toward your startup. Specifically, I have my money Rivian Automotive (RIVN -1.51%). Here’s why I think it’s worth the investment right now.

1. Rivian has a strong brand identity and loyalty

First, Rivian has created a brand that already stands out from the rest of the EV crowd. Rivian tops list of all automakers for top car brand customers would buy again — 86 percent say they would buy another Rivian, according to Consumer Reports. The percentage was even higher than brands with very loyal customers, incl BMW and Porsche.

It’s easy to overlook the strength of the brand and focus instead on more quantitative data when considering a Rivian investment. But I’d argue that for a new company, especially in the automotive industry where brand recognition is key, it’s an impressive feat for Rivian to have established itself so quickly.

2. It approaches gross profitability

Starting a new electric vehicle startup is expensive and takes years to reach profitability, but Rivian is getting close. Rivian’s management says it will have a “modest” gross profit by the end of the fourth quarter.

Rivian instituted a number of cost-cutting measures earlier this year to help achieve its goal, including redesigning some of its vehicles’ internal systems. The result was a 35 percent reduction in material costs for its vans and a similar drop in costs for its truck and SUV.

Rivian also delayed a new manufacturing plant in Georgia, saving the company $2 billion. These combined moves showed Rivian’s commitment to achieving its gross profit targets.

3. Cheaper vehicles are on the way

While the R1T and R1S are relatively popular, their price tags are out of reach for many buyers. The R1S starts at $80,400 and the R1T at around $70,000.

However, Rivian will start selling two new, cheaper vehicles in 2026, the R2 and R3. The R2 is a mid-size SUV that starts at just $46,000, and the R3 is a mid-size crossover that starts at around $40,000.

With the average new vehicle costing about $47,000 in the US right now, the R2 and R3 should expand Rivian’s customer base to many more potential car buyers and hopefully boost the company’s vehicle sales.

Image source: Rivian Automotive.

4. You can buy Rivian at a relative discount right now

Rivian went public when the buzz around EV stock was quite high, but many stocks have since come back down to Earth, including an 86% drop in Rivian’s stock price. Rivian’s stock is also trading at a discount compared to some of its rivals. Rivian stock has a price-to-sales ratio of 2.5, compared to another EV startup. LucidP/S ratio of 11.8.

You will have to be patient

If you spend your $500 on Rivian stock, you know you’ll probably have to wait a while to see any profit. And like any investment, there is no guarantee that it will ever come. But if you’re bullish on the future of electric vehicles and recognize Rivian’s ability to build great vehicles and develop a strong brand, then allocating $500 to the electric vehicle start-up right now could end up being a smart bet.