Lucid Group (LCID 2.60%) and Rivian Automotive (RIVN 0.50%) are two of the most exciting electric car stocks on the market. Both have exciting growth potential, but only one stock is an obvious buy today. Let's find out which one that is.
Image source: Getty Images.
Lucid just secured a $300 million deal with Uber
The big news for Lucid this summer has been its new partnership with Uber Technologies. As one of the largest ride-sharing businesses in the world, Uber reasonably has its eyes on the global robotaxi market, which experts believe will be worth many trillions of dollars. Uber has dabbled in autonomous vehicles in the past. But its biggest hurdle has simply been a lack of viable technology. This is why Uber's partnership with Lucid makes so much sense.
For years, Lucid has pitched itself more as a technology company than a car maker. Its former CEO stated earlier this year that he'd like the company to be 20% car maker and 80% technology supplier. This vision has partially been realized with Lucid's latest deal with Uber, which will leverage the company's tech-heavy vehicles for its fleet of autonomous taxis. Uber agreed to purchase 20,000 Lucid vehicles over the next six years, as well as invest $300 million into Lucid.
The issue for Lucid will be timing. The deal spans six years, but Lucid needs help right now. It posted a net loss of $539 million last quarter -- more than Uber's entire cash infusion. Uber's robotaxi service, meanwhile, won't begin until late 2026 at the earliest.
Lucid will need to rely on rising consumer sales of its Gravity SUV platform in the meantime. Wall Street expects sales to grow by 60% this year, with another 90% growth expected in 2026. But with only two high-priced models in its lineup, and a robotaxi opportunity that could take years to play out, it will remain very difficult for Lucid to turn profitable over the medium term.
Rivian is betting its future on three new electric vehicles
Rivian's path toward growth is very different than Lucid's. The company is nearing a milestone that most EV makers dream of: the launch of affordable, mass-market vehicles. The R2 -- which is expected to debut with a starting price of $45,000 -- is set to begin production early next year. New factory additions will be finalized soon, with the expansions supporting the production of 155,000 R2s per year. For context, Rivian sold a total of around 50,000 vehicles in 2024.
The R3 and R3X -- two additional models that are expected to have starting prices under $50,000 -- are expected to begin production in late 2026 or early 2027. With their launch, Rivian will have three vehicles that are affordable to the masses. For comparison, Lucid's two existing models cost $70,000 to $80,000, though options and upgrades can bring the total price well above $100,000.
With 69% of Americans hoping to spend less than $50,000 on their next vehicle purchase, Rivian is in the driver's seat when it comes to catering to the mass market.
Rivian versus Lucid stock -- which company wins?
Both Lucid and Rivian have bright futures when it comes to revenue growth. But when it comes to investing, Rivian stock is the clear winner.
Rivian's mass market vehicles are nearing reality, while Lucid won't see any new model introductions until at least 2027. Lucid's exposure to the robotaxi market is exciting, but expect the company to struggle to maintain profitability for years to come. Rivian, meanwhile, has already posted positive gross margins. By aggressively ramping up production of cheaper vehicles, the company has a strong chance of achieving economies of scale, perhaps enough to generate positive net profits.
Finally, Rivian's shares trade at just 2.9 times sales -- a sizable discount to Lucid's 6.5 multiple. In 2025, Rivian has prepared itself for a promising 2026, with dramatically higher sales and improved margins a potential reality. Lucid's year so far has also been exciting. But it may be until 2027 that we receive any notable improvement in profitability, or actual traction in its ability to supply the robotaxi industry.
