From Nasdaq Inc.:

1. The electric vehicle (EV) boom is losing momentum, with growth in the United States slowing to 42% year over year last November, down from 75% in 2022. Even with subsidies, EV sales are taking longer to sell than gasoline-powered vehicles, leading to a slowdown in the EV market. Toyota has benefited from embracing a mixed strategy of gasoline, hybrid, and electric vehicles.

2. Both Tesla (NASDAQ: TSLA) and Rivian Automotive (NASDAQ: RIVN) stocks have seen a 20% decline in the last six months, even as the S&P 500 climbs higher, providing potential buying opportunities for long-term investors. However, Tesla’s stock is trading at a premium despite a waning market dominance and a slowing delivery growth.

3. Rivian Automotive, unlike Tesla, has never generated a profit and has gone into this EV downturn far from generating one. In the third quarter of 2023, the company posted a gross profit loss of $477 million on $1.3 billion in revenue. However, Tesla is likely in a better position than Rivian, should investors be forced to choose between the two.

4. It is advised to avoid investing in the entire EV sector due to the flood of supply, intense competition, and huge costs associated with the EV boom. Instead, consider investing in profitable blue-chip stocks over EV stocks such as Rivian and Tesla. The Motley Fool has revealed the 10 best stocks for investors to buy, including Tesla, but there are 9 other overlooked stocks to consider.



Read more: Better Buy in 2024: Rivian or Tesla Stock?