Rivian's 'Exponential Move' Vs. Apple's 'Incremental Grind:' Why This Trader Wants To Exit Tech Giant And Pile Into EV Startup

Apple Inc. (NASDAQ:AAPL) is now a company with a whopping $3 trillion market capitalization — but one trader is making a bold move, preferring to cash out on the iPhone maker and invest in EV startup Rivian Automotive, Inc. (NASDAQ:RIVN).

What Happened: Speaking on CNBC’s Fast Money segment, trader and market analyst Steve Grasso shared his perspective on the two companies. 

“I have owned it since December 2020,” Grasso said of Apple stock.

While Apple’s upward trajectory may now be a grind higher after reaching the $3 trillion milestone, Grasso sees Rivian as an exciting beta play with the potential for a spike higher. 

See Also: Best Electric Vehicle Stocks

A Beta Play: “Rivian is a beta play for me now,” the trader said. Beta stock plays are those that outperform the broader market.

Apple is a “staircase up” but Rivian is a “spike higher,” Grasso said. “I think that Rivian could be trading at $30 to $50 without blinking an eye,” he added.

Grasso believes that Rivian could easily trade between $30 and $50, given its strong fundamentals and transformation into a bona fide car company. 

He acknowledged lingering concerns about Rivian’s production but noted that the company’s recent second-quarter numbers have helped allay those worries.

Favorable Factors: Grasso expressed his confidence in Rivian, stating that it now resembles a “real car company with real products” and expects the stock to experience tremendous upside.

“We’re on an exponential move higher [for Rivian] versus maybe an incremental grind higher for Apple,” he said.

Price Action: On Thursday, Rivian closed the session with a 5.82% gain, reaching $21.62, while Apple experienced a modest 0.25% increase, closing at $191.81, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Legal Spotlight on Rivian: Faces Shareholder Lawsuit Claiming Concealed Price Hikes Post-IPO

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