From Nasdaq: 2025-06-12 04:40:00

In a historic moment, President Trump and Tesla CEO Elon Musk clashed on social media, causing Tesla’s stock to plummet by $150 billion in market capitalization in a single day, reflecting a 15% decrease since May. Investors are growing pessimistic about Tesla’s future due to its financials and market trends.

With Tesla losing market share in the EV industry, Rivian Automotive emerges as a competitor. While Rivian’s market share in the U.S. is small at 2.9%, its upcoming release of the more affordable R2 SUV aims to attract a wider customer base and increase overall deliveries.

Investors are eyeing Rivian’s growth potential with the debut of the R2 SUV, expected to boost market share amidst Tesla’s struggles. However, Rivian faces challenges in achieving positive cash flow, making it a high-risk investment despite its financial backing.

While Rivian’s future hinges on the success of the R2 SUV, potential investors should consider the risks involved in buying its stock. The company’s cash burn rate and history of negative gross margins raise concerns about its ability to achieve profitability in the long term.



Read more at Nasdaq: Tesla Stock Crash: Time to Rotate and Buy Rivian Instead?