It’s been a bumpy ride for many electric vehicle (EV) stocks over the past few years, and both Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) have felt each jarring pothole. Rivian’s shares have tumbled 79% and Lucid’s have fallen 92% over the past three years.
If those declines haven’t scared you off, then you might, like me, have a long-term optimistic view of the EV market. And there have been glimmers of hope. Sales of electric vehicles rose 7% in the U.S. last year, reaching 1.3 million.
However, not every EV start-up will make it through this difficult time and emerge stronger for it. So, based on what’s happening now, does Rivian or Lucid look like the better EV stock? Let’s take a look.
Lucid’s high-end Air sedan has rightly impressed automotive enthusiasts. The Air won MotorTrend‘s 2022 Car of the Year in its very first model year and recently won the 2024 Best Luxury EV by Top Gear. The Air also recently made it on Car and Driver‘s coveted 2025 10Best Cars List, calling attention not just to its 400 miles of estimated EPA range but also the Air’s impressive driving experience and luxurious interior.
Why does all of that matter? Because the automotive market is highly competitive, especially when it comes to EVs, and new start-ups need to make products that stand out. Lucid has accomplished this, but unfortunately it hasn’t translated to impressive sales.
The company had just $200 million in revenue during the third quarter (ended Sept. 30), and its net losses expanded to $992 million, higher than the loss of $630 million in the year-ago quarter. The company managed to increase vehicle deliveries by nearly 91% to 2,781 vehicles, but vehicle production was mostly unimpressive. Lucid made just 1,805 vehicles, a modest 16% increase from Q3 2023.
Lucid raised an additional $1.75 billion in funding last year, which the company says gives it a financial runway “well into 2026.” Beyond that, though, Lucid needs to start standing on its own by significantly increasing production and, most importantly, lowering costs.
It hasn’t been smooth sailing for Rivian, either. The company recently released its 2024 production and delivery numbers, with the EV start-up making just 49,476 vehicles last year, down 13.5% from 2023. Meanwhile, deliveries only rose 3% to 51,579.
Thankfully, Rivian’s management said that component shortages that caused a production slowdown last year “are no longer a constraint on Rivian’s production.” Hopefully, that’ll clear things up for Rivan’s future production and deliveries, but investors should be watching this closely.
