Rivian (RIVN) and Lucid (LCID) have seen significant declines since their public debuts in 2021, with Rivian’s stock down 80% and Lucid’s nearly 70% from their IPO prices. Both companies have faced challenges in meeting production targets due to supply chain issues and rising costs, with Rivian producing only 24,337 vehicles against a goal of 50,000, and Lucid manufacturing 7,180 of its planned 20,000 vehicles.
Despite these setbacks, both companies are attempting to recover. Rivian’s upcoming R2 SUV, priced significantly lower than its current models, is expected to boost production and margins, with projected deliveries of 62,000-67,000 vehicles in 2026. Lucid is also ramping up production with its Gravity SUV, although a recent recall may hinder its progress. Analysts forecast substantial revenue growth for both firms, but they remain unprofitable and reliant on capital raises.
For investors, Rivian appears to have a slight edge due to its higher production rates and the potential impact of the R2 SUV, making it a more appealing option in the current market landscape.
Source: fool.com