Investors have been intrigued by electric vehicles (EVs) since Tesla (TSLA +8.49%) took the world by storm and proved an EV could be cool, compelling, and relatively affordable. Thanks to the groundwork Tesla helped lay, young EV makers such as Rivian (RIVN +7.55%) and Lucid (LCID +9.97%) received significant hype early on. Not only are Rivian and Lucid well-positioned for the global surge in EVs, high-tech, software-developed vehicles, and even driverless vehicles, but the Iran conflict underscores once again why they could be huge long-term winners.
Image source: Rivian.
Winning products solve problems
It depends on how far back you want to look, but examples of spiking oil prices are abundant. In 2008, gas climbed to a then-record $4.05 per gallon due to flat production, rising demand, and financial speculation. As a more recent example, Russia's invasion of Ukraine sent gas prices in the U.S. to another record of $5.01 per gallon. Fast-forward to today, and the Iran conflict has disrupted oil flows through the Strait of Hormuz, a major chokepoint in global oil supply, sending prices higher.
Unfortunately, these instances are numerous, and it's not a matter of if, but when, it will happen again. Driving oil prices higher can be anything from a regional or global war to regime sanctions or scattered supply disruptions, and the result is that Americans feel the squeeze at the pump.
NASDAQ: RIVN
Key Data Points
EV makers, however, offer an increasingly popular option for Americans to break free of this vicious cycle, because electricity prices change more slowly than oil, electricity prices are set domestically, and electric costs a fraction of the gasoline equivalent. The fuel savings are compelling: Electrek did the math and found that a Ford Motor Company F-150 owner switching to (a now-discontinued) F-150 Lightning would save roughly $1,900 annually in fuel costs.
Rivian, Lucid, Tesla, and other EV makers popping up around the globe solve a critical problem amid volatile oil and gas prices. Solving that problem makes these stocks compelling long-term, but there are more issues investors need to consider.
Patience is required with these EV stocks
Many young EV makers are struggling with hefty cash burn and significant losses as they build their brands and scale. This is a long-term story that requires patience for multiple reasons, and Lucid offers a current example.
NASDAQ: LCID
Key Data Points
In March, Lucid produced 5,500 vehicles and delivered just under 3,100. Last year, Lucid totaled only 15,841 deliveries, a small fraction of what juggernauts such as Tesla or China's BYD turn out. Those figures emphasize the long road ahead for Lucid and rival Rivian to build scale. That's not the only drawback of owning a young EV maker, as the companies work out production kinks. Even in the first quarter of 2026, Lucid ran into another production speed bump, with the Lucid Gravity SUV production disrupted for 29 days due to a supplier quality issue with second-row seats.
EVs help Americans solve oil and gas price problems and are well positioned to thrive as driverless vehicles and software-defined vehicles require more computing power, which EVs are better equipped to handle. But investors would be wise to remember that Lucid and Rivian remain highly speculative and risky stocks. Patience is required over the long term.
