Rivian Automobile (Nasdaq: Riven) Investors have been happy over the past month. The valuation of the electric vehicle inventory soared about 40%. However, looking under the hood, it's easy to project Significantly Upcoming growth. There are three main reasons why investors should consider buying Rivian shares before the company's next earnings call, which are expected to happen around August 5.

Rivian has experienced some sales growth in recent years. Its R1T model was released in 2021 and the R1S version was launched the following year. Sales are large after launch, but the price tag can be close to $100,000, depending on the options, and the total addressable market for these vehicles is always small. Rivian's flat sales growth in recent years shows that the company has reached market saturation with only two cars in its lineup.

All of this should change when the company starts shipping the first of three new models: R2, R3 and R3X. All three are expected to be under $50,000, and will release millions of new potential buyers that can eventually afford one of the company's products. Analysts expect sales growth of only 5% in 2025, a figure that will reach 41% in 2026. Once the output of these models starts to expand, however, revenue growth in 2027 and beyond may explode.

Last year, Rivian's management team promised investors would receive positive gross margins by the end of the year. The company didn't deliver until the last quarter. Last quarter, its gross profit margin further increased to positive areas, matching Teslaprofitability.

The biggest factor in gaining profitability as an electric vehicle manufacturer is reaching scale. The more cars a company sells, the more fixed costs will be distributed in the sales volume. If Rivian's mass-market vehicles sell as much as Tesla's Model Y and Model 3 cars, expect Rivian to experience a lot of operational leverage, which will increase profitability.

The above two factors will not be achieved until the company's next earnings call. In fact, it will take more quarters for new Rivian models to enter the market. From there, it can take about a year to fully scale. The reason for buying Rivian now is not that it will reach recent milestones in the coming months. Instead, even if investors have to wait a year or two to reach the largest catalyst to reach, valuations seem too cheap, even if investors have to wait a year or two.