RIVN Shares Just Lost Out on Market Cap to LCID Stock

Step aside, $Rivian Automotive (RIVN.US)$ ! There’s a new electric vehicle (EV) startup leader based on market capitalization, and its name is $Lucid Group (LCID.US)$ . Recently, Lucid’s market cap of $62 billion surpassed Rivian’s market cap of $58 billion. After Rivian ballooned to as high as $179 following its initial public offering (IPO), shares have slumped lower to the mid-$60 range. Furthermore, shares of RIVN stock are down more than 35% year-to-date (YTD). While LCID stock is down roughly 7% YTD, Lucid’s superior YTD performance has allowed Lucid to surpass Rivian in terms of market cap.

Both Rivian and Lucid offer investors an opportunity to invest in an early stage EV startup. However, the valuation of these two names is what is holding some investors back. Furthermore, competition from legacy automakers like $Ford Motor (F.US)$ and $General Motors (GM.US)$ is also heating up. On top of that, investors should be aware of the elephant in the room, namely $Tesla (TSLA.US)$

Last quarter, Rivian reported revenue of $1 million on top of a $1.23 billion loss. On the other hand, Lucid reported revenue of $232,000 with a $524.4 million loss. While these two EV makers remain unprofitable, investors should be reminded that it took Tesla 18 years to become profitable. Tesla achieved this accomplishment in 2020 and delivered 500,000 vehicles that year.