2 Top EV Stocks to Buy in January: Lucid Group and Rivian Automotive

As we enter 2025, the electric vehicle (EV) market continues to gain momentum, driven by increasing demand, government incentives, and technological advancements. Two EV stocks that stand out as potential bargains with significant upside potential are Lucid Group (LCID) and Rivian Automotive (RIVN). Let's dive into the reasons why these stocks could be attractive investments in the new year.



Lucid Group (LCID)

Lucid Group, a smaller publicly traded EV manufacturer, has a sales base that is less than 1% the size of Tesla's. However, its biggest days of growth are still ahead of it. Over the last two quarters, Lucid's revenue grew by roughly 70% and 90% year over year, respectively. Analysts predict that Lucid's sales will jump 118% in the next 12 months, crossing the $1 billion mark for the first time in company history.

Lucid's Gravity SUV, launched in late 2024, is expected to contribute to the company's sales growth. Additionally, Lucid plans to launch three new midsize mass-market vehicles in the coming years, which should help drive sales growth. However, investors should be aware of the financial risks associated with Lucid's small size and the capital-intensive nature of starting an electric vehicle company.



Rivian Automotive (RIVN)

Rivian Automotive, unlike Lucid, has already proven capable of expanding its sales base significantly. In 2023, annual sales topped $5 billion for the first time, although a recent sales dip has pushed it under that mark for the latest trailing-12-month period. Rivian is expected to launch three new models in 2025, all priced below $50,000, which should help the company tap into the mass market and drive sales growth.

Rivian recently secured a multibillion-dollar partnership with Volkswagen, infusing the company with much-needed cash to help it survive until next year's inflection point. However, investors should be aware of the market saturation and growth stagnation risks associated with Rivian's luxury models and the potential challenges in tapping into the mass market.



In conclusion, both Lucid Group and Rivian Automotive have significant upside potential in the EV market. However, investors should be aware of the risks associated with these companies and maintain a long-term perspective. By staying informed about regulatory developments, geopolitical trends, and technological advancements in the EV industry, investors can make more informed decisions and potentially reap the benefits of the growing EV market.