Tesla vs. Rivian: Which EV stock should you buy this month?

Tesla (TSLA) and Rivian (RIVN) experienced challenging operational years in 2024, with Tesla’s stock significantly increasing while Rivian’s shares dropped approximately 43%. Tesla’s stock performance benefited from a late surge following Donald Trump’s election victory, as CEO Elon Musk supported him and took on an advisory role.

In terms of vehicle deliveries, Rivian reported 51,579 vehicles delivered in 2024, representing a 3% increase from 2023. In contrast, Tesla delivered nearly 1.79 million vehicles in 2024, down from 1.81 million the previous year. Rivian’s growth came despite a production shutdown for a retooling upgrade and component shortages later in the year. Tesla faced its first-ever decline in yearly deliveries due to increased competition and sales pressures in markets like China and Europe.

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Looking ahead, investors remain optimistic about Tesla’s future potential, particularly in autonomous driving and robotaxi technologies rather than solely focusing on electric vehicle sales. During a significant event, Tesla showcased a two-seat cybercab designed without a steering wheel or pedals, expected to be priced under $30,000 with production slated to begin before 2027. However, specific details regarding the technology, driving range, and safety features of the vehicle have not been disclosed.

Despite challenges, Tesla has made no strides toward developing a fully autonomous vehicle, and its Supervised Full Self-Driving (FSD) technology has been involved in several notable accidents and investigations. Musk has advocated for the removal of National Highway Traffic Safety Administration (NHTSA) car crash reporting requirements, an effort potentially supported by the Trump administration. This alteration could facilitate the approval of Tesla’s autonomous driving technologies and pave the way for its robotaxi operations.

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Currently, Waymo, owned by Alphabet, is the sole provider of paid robotaxi rides in the United States. However, its technology is more costly due to its reliance on lidar. Tesla acquired lidar sensors last year, leaving open the question of whether it will integrate this technology to enhance its offerings. If Tesla successfully develops an affordable autonomous robotaxi, it could capitalize on significant market opportunities.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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