Stock Market: Are Lucid and Rivian the Top EV Stocks to Buy Now? Is Tesla’s Reign Over?

Stock exchange: Are Lucid and Rivian the Top EV Stocks to Purchase Now? Is Tesla's Reign Over? The electrical car (EV) market is dealing with turmoil due to U.S. tariffs on imported lorries and international financial unpredictability, resulting in sharp stock price declines across the sector. Rivian and Lucid, two U.S.-based EV manufacturers, are placed to possibly gain from these tariffs, as their domestic production centers shield them from import-related cost increases. Rivian, known for its R1T truck and R1S SUV, is having problem with a 90% stock rate drop from its peak, stagnant growth, and negative cash circulation, predicting lower production in 2025. Its R2 model, set for 2026, could drive future development but risks cannibalizing higher-priced sales. Lucid, with its Air sedan and new Gravity SUV, forecasts doubled shipments in 2025, using more powerful growth potential customers. Nevertheless, its smaller scale, unfavorable cash circulation, and niche premium focus present risks. Both companies' stocks, trading at $12.50 (Rivian) and $2.40 (Lucid), are miscalculated by about 50% compared to their intrinsic values ($ 6.67 and $1.14, respectively), per reduced capital analyses. The tariffs offer a competitive edge versus import-reliant rivals, but tangible benefits, like increased demand, stay evasive, as seen in Rivian's weak Q1 2025 shipments. Both firms deal with industry challenges, consisting of high costs and the requirement for battery innovation developments. Financiers might discover Rivian a little more appealing due to its wider market and improving cash flow, however both stocks are high-risk at present costs, possibly needing a 50-60% drop to end up being attractive. The EV sector offers chances amidst the decline, however Rivian and Lucid's uncertain paths to success need caution, with safer alternatives like bonds providing better near-term returns.

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