EV Stocks: Lucid, Rivian, and Tesla's Growth Potential Explored

Electric vehicle stocks faced challenges in 2024, but Lucid Motors is showcasing strong growth with an 18% increase in sales, while Rivian plans to launch new models to rekindle growth. Tesla remains a key player despite mixed performance. Investors should consider the long-term potential.

Date: 02-02-2025

AI Rating: 7

The report indicates significant challenges within the electric vehicle (EV) sector, particularly in 2024 where several stocks saw declines of 50% or more. However, Lucid Motors stands out with an impressive 18% sales growth over the past year, showcasing potential for further expansion driven by the new Gravity SUV. Analysts are predicting a remarkable 117% sales growth for Lucid in 2025, which positions it uniquely in a struggling market.

Lucid Motors (NASDAQ: LCID) demonstrates strong growth characteristics that could appeal to investors. With the company valued at 8.5 times sales currently, and expectations of trading at roughly 4 times forward sales next year, there may be considerable upside potential with its relatively low market cap under $10 billion.

In contrast, Rivian (NASDAQ: RIVN) has faced a downturn as sales have reduced after rapid growth post-IPO, where annual sales climbed to over $5 billion in 2024. The valuation dropped, now at a price-to-sales ratio of 2.7. As Rivian prepares to launch new affordable models priced under $50,000 by the end of next year, the prospect for a return to growth is on the horizon, although it will require patience from investors.

While Rivian's mixed performance may raise concerns, investors could potentially benefit from future growth opportunities aligned with its new model lineup. Meanwhile, Tesla (NASDAQ: TSLA), despite its high valuation at 14 times sales and minimal growth of just 2.5% last year, maintains strong operational advantages and significant market presence, suggesting stability if not immediate growth.

In summary, while the EV sector faces challenges, Lucid and Rivian exhibit potential growth that could be favorable for investors willing to take a long-term view.

Stocks: LCID RIVN TSLA