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Soaring 50% in 2023, Rivian (NASDAQ: RIVN) investors were surely excited after they cleaned up the New Year's Eve decorations and rang in 2024.

But the past six months have largely been a letdown for the electric vehicle (EV) manufacturer's investors. Shares of Rivian plummeted 42.8% in the first six months of 2024, according to data provided by S&P Global Market Intelligence. The move is especially disheartening for Rivian investors in light of the fact that the S&P 500 had rocketed more than 14% higher during the same period.

A string of disappointments motivated investors to steer Rivian out of their portfolios early in the year

It didn't take long into 2024 before investors to express their disapproval. In the first week of trading in the new year, shares of Rivian plunged 19% after the company reported fourth-quarter vehicle production numbers that failed to charge up investor excitement. In addition, a Goldman Sachs analyst expressed pessimism for the company's ability to maintain growth amid increased pressure from competitors.

Shares proceeded to drive lower during the weeks leading up to the company's reporting of its fourth-quarter 2023 financial results -- an event that accelerated the stock's 2024 decline. Rivian reported the results after the market closed on Feb. 21, and the following day, shares sank 26%.

What caused the market to sour on the EV stock that it had been so sweet on in 2023? Coming up short of analysts' expectations that it would post a loss of $1.32, Rivian reported an adjusted earnings per share (EPS) loss of $1.36 for Q4 2023. Even more disconcerting, however, was management's announcement that it planned on reducing the company's workforce by 10% -- a decision that investors recognized as a likely harbinger of slowing growth in the near future.

Is Rivian worth a look after its dismal start to 2024?

While Rivian stock has failed to completely bounce back from its early decline, shares seem to be on the road to recovery. Since closing at their lowest point on April 15, when the stock closed at $8.40, shares have been consistently rising. A variety of factors have powered investors' enthusiasm, but arguably, the most likely catalyst has been the announcement of Rivian's partnership with Volkswagen.

Because the company is unprofitable, it's more helpful to value the stock using the price-to-sales ratio instead of the price-to-earnings ratio. In doing so, investors will find that Rivian stock is currently less expensive than other upstart EV companies that are still unprofitable. Whereas Lucid (NASDAQ: LCID) and VinFast Auto (NASDAQ: VFS) are trading at P/S ratios of 12.8 and 8, respectively, Rivian is trading at only 3.4 times sales. For EV investors looking for a bargain, now's a great time to investigate a little further and kick the tires on Rivian stock.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Volkswagen Ag. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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