Want to add a massive growth stock to your portfolio without paying a huge premium? This is your chance. Right now, there’s an EV stock that’s preparing for a huge growth spurt, yet its shares have seen a dramatic reduction in value given selling pressures across the rest of its industry.

You’ll have to be strategic, but your portfolio could experience huge gains if you’re willing to stay patient.

Expect this company’s sales to skyrocket very soon

Usually when a company is experiencing rapid sales growth, its valuation reflects this. That is why it’s possible to lose money on a stock even if the company itself is growing by leaps and bounds. If you pay too much for that growth, you could be getting a raw deal.

To avoid this problem, you can try to purchase shares of a company before its growth takes off. That way, the investment benefits not only from the underlying sales growth, but also from the likely jump in valuation multiples that the stock could receive.

Of course, all of this is easier said than done. In reality, it’s rare to lock in a discounted valuation for a stock everyone expects to grow by leaps and bounds. To accomplish this, you usually need to be early to the party, investing well before that growth trajectory becomes clear to others. This is exactly the opportunity investors have with Rivian Automotive (NASDAQ: RIVN) right now.

Rivian has already experienced a massive jump in sales. Over the past two years, revenue has grown by nearly 900% to reach $5 billion. But compared to the industry behemoth, Tesla, it’s clear that Rivian’s journey has just begun.

In the chart above, you can see when Tesla’s sales hit inflection points: right around 2016, and then again in 2020. These two points roughly correspond to the release of its first mass-market vehicles: the Model 3 and the Model Y.

While the Model S and Model X were well regarded by the market, their price point of around $100,000 remains far above what most consumers can afford. The Model 3 and Model Y, meanwhile, were priced around the $50,000 range, pushing Tesla into the mass market. They brought a huge uptick in sales, a pattern Rivian looks primed to repeat.

Right now, Rivian has only two luxury models: the R1T and the R1S. They have garnered plenty of fanfare, with Consumer Reports listing the company as having the highest level of brand loyalty among all auto manufacturers — electric or otherwise.

Earlier this year, the company surprised investors by announcing three new models: the R2, R3, and R3X. All are expected to debut under $50,000, pushing Rivian into the mass market for the first time. It’s not only possible, but probable that we’ll see a massive spike in sales from Rivian once those models hit the road.

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How to invest in Rivian right now

Here’s the problem: The company doesn’t expect to release its new mass-market models until 2026, with some versions not arriving until 2027. That’s potentially two or three years away, a reality matched by Rivian’s diminutive market cap of just $13 billion.

Shares trade at 2.5 times sales versus Tesla’s valuation of 8.3. At this point, Rivian’s sales base is a promising start, but simply not enough to keep the company afloat.

Last quarter, the automaker lost $32,000 for every vehicle it sold. Its future will be made or broken based on the success of its less expensive models.

There’s even a question about whether it can raise enough capital to survive until then, a concern slightly blunted by a recent partnership with Volkswagen that could provide up to $5 billion in financing.

For now, the market remains skeptical, placing a heavy discount on shares compared to their previous trading levels. If the company can execute, Rivian stock can make a lot of money, but this stock is for long-term investors only.

Expect volatility, and perhaps some chances to dollar-cost average, until we gain more clarity on production and sales forecasts for its less costly vehicles. But investing now likely provides the most potential upside, even if there are legitimate risks.

Should you invest $1,000 in Rivian Automotive right now?

Before you buy stock in Rivian Automotive, consider this:

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Volkswagen. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

1 Magnificent Electric Vehicle (EV) Stock Down 45.8% to Buy and Hold Forever was originally published by The Motley Fool