Rivian Or Lucid: Which Of The Two Loss-Making EV Startups Is Solving Cash Burn?
Portfolio Pulse from Anan Ashraf
Rivian Automotive Inc. (RIVN) and Lucid Group Inc. (LCID) are two California-based EV startups investing heavily in R&D while yet to turn a profit. Rivian, with higher sales volume, reported a larger net loss compared to Lucid. Both companies are planning new models to expand their market reach. Rivian aims for profitability by late 2024, while Lucid has not provided a timeline. Year-to-date, Lucid's stock is up 2.7%, while Rivian's is down 32%.
August 27, 2024 | 12:35 pm
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NEUTRAL IMPACT
Lucid is investing in R&D for the Lucid Gravity SUV, with production expected to start this year. It reported a smaller net loss than Rivian and its stock is up 2.7% YTD. Lucid has not provided a profitability timeline.
Lucid's R&D investment and upcoming Gravity SUV production show growth potential. The smaller net loss compared to Rivian and positive stock performance YTD are encouraging. However, the lack of a profitability timeline adds uncertainty.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
Rivian is investing heavily in R&D and plans to launch the R2 SUV in 2026. Despite higher sales, it reported a larger net loss than Lucid. Rivian aims for profitability by late 2024, but its stock is down 32% YTD.
Rivian's significant R&D investment and future model plans indicate a long-term growth strategy. However, the current financials show a large net loss, and the stock's poor performance YTD suggests market skepticism. The aim for profitability by late 2024 provides a potential positive outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100