Rivian (RIVN 4.42%) is expected to report earnings on May 6. So far this year, shares of the EV maker have been weak, falling by more than 10%. Yet growth estimates are starting to pick up, and shares trade near their cheapest levels in years.

If you're looking to buy a high-potential electric car stock on the cheap, this looks like your chance.

1 Reason Rivian stock is a buy before earnings

To understand Rivian's valuation today, it's important to first understand where the company is in its long-term growth journey. As with many EV makers, Rivian's first models were luxury vehicles with high price points. Both the R1S and R1T -- Rivian's only models on the market right now -- can cost upwards of $100,000 depending on options. These high-end models allowed the company to scale up its manufacturing base and establish a reputation for quality. Last year, for instance, Consumer Reports named Rivian its top choice among a survey of car owners. Rivian was the only car manufacturer of any kind, both electric and conventional, to achieve a perfect five out of five rating for customer satisfaction.

But Rivian's growth journey won't end with two high-priced luxury models. Three new models are in the works -- the R2, R3, and R3X -- all of which are expected to debut under $50,000. These vehicles will be targeting a broader customer base, with entry prices far more affordable than previous models. The R2 is expected to debut first, with production slated for sometime in 2026. "R2 is going to really open up the market for us," Rivian's CEO commented in February.

As you can see below, Rivian shares trade at a deep discount to competitors like Tesla and Lucid Group. Why? Because Rivian's sales growth over the next few quarters is expected to be tepid or even negative. That's because the company's biggest growth driver -- the introduction of new affordable vehicles -- won't occur until at least 12 months from now, beyond the scope of most analyst growth projections.

All of this adds up to a compelling case for buying Rivian shares before earnings arrive next month. Put simply, investors are locking in a great price before any additional news surrounding its mass-market vehicle launch arrives. As we get closer to the launch, Rivian's management team will be providing more and more clarity around the launch timeline, forcing analysts to start incorporating higher growth rates into their models. The time to buy is before these growth figures are updated.

But don't jump in just yet. There's one critical risk you must understand before buying Rivian stock today.

RIVN PS Ratio data by YCharts

Don't buy Rivian shares before considering this risk

The best time to buy a growth stock is before growth is priced into the stock price. Right now, with meager growth estimates expected in 2025, analysts are projecting much growth. But if you're willing to look into the long term, to 2026 and beyond, you'd understand that Rivian has plenty of growth upside. It's just that this growth is occurring over a longer time horizon than most Wall Street analysts pay attention to.

Buying Rivian shares now locks in a great valuation well before these growth estimates start to tick up. But there's no telling when we'll get any hard news on Rivian's new affordable models. Perhaps big news will be revealed on May 6, sending the stock price higher. Or perhaps we go several quarters with minimal updates, adding uncertain volatility to shares. Rivian appears like a great long-term investment at these prices, but where the stock price goes in 2025 is anyone's guess. Being early means you'll have to stomach some extra volatility, but that's often how the biggest long-term gains are made.