It's an interesting time for electric vehicle stocks. In addition to the macroeconomic factors affecting all automotive companies, particularly an interest rate environment that makes affordability difficult, there are some electric-car specific headwinds, including intensifying competition and the Sept. 30 expiration of the $7,500 electric vehicle credit -- a major incentive for electric cars. Of course, there are some reasons to be bullish, too. There are the increasing capabilities of software in electric cars and more attractive pricing relative to performance.
Tesla (NASDAQ: TSLA), for instance, recently released lower-cost models. Similarly, Rivian (NASDAQ: RIVN) has plans to bring to market R2 -- the company's most affordable vehicle yet -- in the first half of next year.With all of this in mind, it's a good time to look at the stocks of two of the industry's leaders in the space. Of course, we're talking about none other than
Tesla and Rivian -- two pure-plays that give investors significant exposure to the important industry. The two companies couldn't be more different.
Tesla is very profitable and has a war chest of cash. But investors have to pay up for it. Its market capitalization isn't too far from $1.5 trillion as of this writing. Rivian is a much smaller company and is earlier in its roadmap. Its market cap sits at just $16 billion as of this writing.So, which stock is the better buy?Continue reading
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