From Nasdaq: 2025-06-17 09:05:00

Tesla and Rivian are two major players in the electric vehicle market, with Tesla facing challenges in sales and market share while Rivian is a young startup with ambitious plans. Tesla’s profit margins have decreased, and its growth outlook is uncertain, while Rivian is focusing on efficiency gains and a new SUV model to drive profitability. Both stocks currently carry a Zacks Rank #3 (Hold), with Rivian showing more potential for future growth.

Rivian delivered 8,640 vehicles in Q1 2025, down from the previous year. The company expects to deliver 40,000-46,000 units in 2025, focusing on its upcoming R2 SUV priced at $45,000. Rivian reported a positive gross margin of 17% in the latest quarter and expects losses to decrease in 2025. Cash burn remains a concern as capital spending rises for future growth and production scale.

Tesla’s core EV business is facing challenges with lower sales and market share, leading to decreased profit margins. Legacy automakers and new players are chipping away at Tesla’s lead in the market. Tesla’s Energy Generation and Storage division is a bright spot, showing profitability, but challenges remain with growth targets and self-driving technology. The upcoming robotaxi event is a wildcard for the company’s future success.



Read more at Nasdaq: TSLA’s Legacy or RIVN’s Promise: Which EV Story Holds Up Better Now?