Since October, Rivian Automotive (RIVN) bounced at the $10.00 level. More recently, RIVN stock staged a strong rally to $12.23, rising by 22% in the last week. The electric vehicle truck supplier is squeezing short sellers.
On November 26, 2024, the U.S. Department of Energy gave Rivian conditional approval for a loan worth up to $6.6 billion. The funds support the construction of Rivian’s EV manufacturing plant in Georgia. The firm must meet several financial, environmental, and technical conditions first. Upon its completion, the plant could produce up to 400,000 vehicles a year.
Rivian does not generate profits from each vehicle sold. Until it reaches economies of scale, bears will continue to bet against RIVN stock.
Ambarella (AMBA) traded above $80 last week before settling at $71.10 on Nov. 29. The firm reported a non-GAAP EPS of $0.11 in its Q3/2025 report. AMBA stock is a high-risk speculation. The supplier of camera chips lost $24.07 million on a GAAP measure. Stock-based compensation cost the firm $26.85 million in the quarter.
Traders should take advantage of Ambarella’s recent hot rally by taking profits. The company does not have appealing growth, yet its valuation is above that of the sector median. For example, its EV/Sales ratio is 10.97 times, compared to the median of 3.4 times.
