Summary: EV demand is growing, Tesla dominates, smaller stocks offer potential upside.

From Nasdaq: 2024-06-03 06:59:00

1. EV demand continues to surge globally, with 1 in 5 vehicles sold being electric. Tesla dominates the market with 1.8 million vehicles sold last year and a $568 billion market cap. Smaller EV stocks with cheaper valuations present potential upside if sales grow like Tesla’s.

2. Rivian’s IPO in 2021 saw high valuations collapse to just over 2 times sales. Strong customer satisfaction and new models at affordable prices give Rivian a promising future. The company needs to scale up production and sales to validate its low valuation and secure long-term success.

3. Lucid Group offers even more upside potential than Rivian due to its much lower market cap, but faces challenges like low sales volume, high cash burn rate, and unclear path to mass market appeal. Comparing it to Rivian, which is further ahead in hitting sales inflection points, makes Rivian the smarter investment choice currently.



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