From Nasdaq: 2024-03-27 09:53:00

The electric vehicle market is now crowded with competitors, but Tesla and Rivian Automotive stand out as the favorites among investors. While both introduce cutting-edge vehicles, Tesla’s profitability and optimized production model give it a significant edge over Rivian.

Rivian struggles to turn a profit, losing around $40,000 per vehicle sold in Q4 2023. With expenses soaring and revenue growth lagging, Rivian faces a challenging financial future. In contrast, Tesla remains the most profitable EV maker, earning nearly $7,000 per vehicle sold.

Tesla’s financial strength, with over $29 billion in cash reserves, allows the company to invest in new factories and technology like autonomous driving. In comparison, Rivian has burned through almost 60% of its cash reserves in the past two-and-a-half years.

Investors looking to capitalize on the EV market should consider Tesla as a safer bet. With more competition entering the industry, Rivian’s lack of profitability and cash burn rate make it a risky investment choice. Tesla’s position as a leader in EV technology makes it a more promising long-term investment option.



Read more at Nasdaq: Better Electric Vehicle Stock: Tesla or Rivian?