Rivian and Lucid shares Explode on the stock market! Will they dethrone Tesla?

If at one time Tesla stock was the only obvious choice for investors wishing to take advantage of the enormous potential of electric vehicles, this is far from the case today, and the recent bullish explosion of certain stocks of VE like Lucid and Rivian, as Tesla dives, once again reminds investors that there are much better choices than Elon Musk’s company.

In this analysis, we will come back more specifically to the cases of Rivian and Lucid Group, two manufacturers of electric cars much less advanced than Tesla in their development, but with therefore much greater potential for progress.

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Rivian explodes higher since its IPO

Rivian AmazonRivian is currently the newest EV stock on the stock exchange, having had its IPO on November 10, just over a week ago. Having started trading at $ 106, the stock reached an all-time high yesterday at $ 179, up nearly 70% over 5 sessions. On the day of yesterday alone, the Rivian share gained more than 15%.

Rivian has the distinction of being a fairly specialized manufacturer of electric vehicles, currently focusing its activity on the production of delivery van for Amazon, a partnership which has also largely played into the appetite of investors for Rivian stock.

From this point of view, buying Rivian shares seems less risky than taking into account only the young age of the company. In addition, the company is already planning to rely on this basic activity of producing specialized vehicles to develop in the future in the production of electric vehicles for the general public, and thus to multiply its potential outlets.

Lucid wants to reach the same capitalization as Tesla

Lucid ActionLucid shares, for their part, rose even more than Rivian yesterday, exploding by nearly 24%, and accentuating their gains by nearly 5% in post-market trading, after results that were far below expectations, both in terms of profit than turnover.

However, the company also confirmed its forecast for production of 20,000 vehicles next year, which excited investors who bought Lucid stock yesterday. This also allowed the capitalization of Lucid Group to exceed that of Ford Motor to reach 89.9 billion dollars.

Note also that during an interview with CNBC on Monday evening, CEO Peter Rawlinson, formerly of Tesla, said that he believed that the value of the share and the market value of the start-up of electric vehicles still had a long way to go to surpass that of traditional automakers and achieve a value comparable to that of the industry leader, Tesla.

Should I buy the Rivian share or the Lucid share?

In fact, the two actions are complementary. Rivian is a newly floated stock that produces specialty vehicles, while Lucid Group produces premium electric vehicles that directly compete with Tesla cars.

Finally, note in closing that these two stocks, as well as the Tesla stock also mentioned in this article, are available from the online broker eToro.

Thus, a strategy to bet on the development of Rivian and Lucid to the detriment of Tesla could be to take a short position on the Tesla share, while buying the Rivian and Lucid shares!

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