Rivian (RIVN +2.71%) is one of the many electric vehicle (EV) stocks that rallied during the pandemic's height in 2020, but then fell precipitously over the next few years. It made a partial recovery in 2025 as Rivian stock gained 48% that year. Even with that rally, the stock remains down just over 80% over the past five years.
The stock could fall further as it tries to deal with the expiration of the U.S. EV tax credit last fall. It is also still posting sizeable net losses as it ramps up production on several new models expected to begin selling in 2026. Rivian did post 78% year-over-year revenue growth in the third quarter, but that gain was likely short-lived and tied to a rush by customers to buy electric vehicles before the tax credit expired.
Image source: Getty Images.
December data confirms the jump was temporary. The company produced 10,974 vehicles and delivered 9,745 vehicles in December 2025. Those numbers were 12,727 and 14,183, respectively, in December 2024.
Skepticism is justified for the EV maker, but that doesn't mean you have to stay away from auto stocks completely.
NASDAQ: RIVN
Key Data Points
Ford is the better automobile stock
The EV boom is fading, and the end of U.S. EV tax credits may have been the final blow. Ford Motor Company (F 0.43%) and other auto stocks have significantly scaled back or scrapped their EV plans. All of these automobile companies would be pushing forward with EV initiatives if they were profitable. The fact that the industry giants are leaving this space suggests that Rivian faces an uphill battle.
Ford sales recently outperformed the auto industry average for the 9th consecutive month and held strong compared to the competition. Ford vehicle sales only declined by 0.9%, while the auto industry saw an average decline of roughly 7%.
Part of the reason Ford does so well is its diverse line-up of vehicles that includes high-end and economy models. It has a car that can match most people's budgets and doesn't rely on EV tax credits to boost sales.
The hybrid model Ford Maverick was a top performer, largely due to its low market price. Ford told investors that this model's sales set a new annual sales record by the end of November.
Entry-level vehicles are helping Ford gain market share, while Rivian primarily markets to high-net-worth individuals. This mismatch could result in Rivian losing market share in 2026.
NYSE: F
Key Data Points
Ford has a more favorable valuation
Ford stock is priced like an automobile stock with its 11 price-to-earnings (P/E) ratio (Rivian has no earnings to generate a P/E ratio). Ford's price-to-sales metric is also quite reasonable and demonstrates how much better Ford's valuation is than Rivian's. Ford has a 0.28 P/S ratio, while Rivian trades at a 3.86 P/S ratio.
Investors can get better long-term growth prospects and a greater margin of safety with Ford. On top of that, the automaker offers a dividend yielding 4.5%, while Rivian does not generate any cash flow for its investors.
As the EV boom continues to fade and people look for alternatives, Ford is in a good position to increase its market share.
