Lucid vs Rivian: Which EV Challenger Is the Better Stock to Buy Now?

Lucid Group (LCID) and Rivian Automotive (RIVN) are pure-play electric vehicle (EV) challengers competing in a highly volatile industry. Both companies have compelling technology, ambitious expansion plans, and clearly defined target markets, but face similar profitability challenges and policy headwinds. Lucid reported Q2 revenue of $259 million, a 29% increase YoY, with production increasing to 3,863 vehicles, up 38% from the same period last year. Rivian reported Q2 revenue of $250.8 million, a 4% increase YoY. Lucid stock is down 25% YTD, while Rivian stock is down 36% YTD.

Lucid Group (LCID) and Rivian Automotive (RIVN) are two prominent pure-play electric vehicle (EV) companies operating in a highly volatile market. Both companies have demonstrated technological prowess and ambitious expansion plans, but they face significant profitability challenges and policy headwinds. In the second quarter of 2025, Lucid reported revenue of $259 million, a 29% year-over-year (YoY) increase, with production rising to 3,863 vehicles, up 38% from the same period last year [1]. Rivian reported Q2 revenue of $250.8 million, a 4% YoY increase [2]. Despite these gains, both companies' stock prices have taken a hit, with Lucid down 25% year-to-date (YTD) and Rivian down 36% YTD [1, 2].

Lucid's Q2 results were marked by a significant net loss, with the company reporting a loss of $850 million on revenue of about $260 million [1]. The company guided toward lower total 2025 production of 18,000-20,000 units and faces supply chain issues that need to be resolved to meet this target. Lucid has close to $5 billion in liquidity available, but less than $2 billion is actual cash. The company is also planning a reverse stock split to avoid delisting from the NASDAQ [1].

Rivian, on the other hand, faced a significant setback in its second quarter due to the removal of emissions penalties, which had been a substantial revenue stream. The company's net loss narrowed to $1.1 billion, but it expects to earn no revenue from regulatory credit sales for the remainder of 2025 [2]. Rivian's gross loss was $206 million, and the company expects its adjusted EBITDA loss for the full year to be between $2 billion and $2.5 billion [2].

Both companies are facing increased competition in the EV market and a slowing market due to reduced federal incentives. Lucid's Air sedan and Rivian's R1 truck and delivery van have struggled to gain traction, and the companies are counting on their upcoming models to drive future growth. Lucid's Gravity SUV has faced delays due to supply chain issues, while Rivian's highly anticipated R2 electric SUV is not expected until 2026 [1, 2].

Investors should closely monitor these companies' topline revenue and cash-burn metrics. Both Lucid and Rivian will need to secure significant funding or make strategic partnerships to navigate the challenges they face. Without a major funding infusion or successful new models, these companies could face dire scenarios [1, 2].

References:
[1] https://autos.yahoo.com/articles/lucid-much-trouble-even-deep-210500085.html
[2] https://www.nasdaq.com/articles/rivian-investors-face-real-setback