Attracting Tesla (NASDAQ: TSLA)-level hype during its initial public offering (IPO), Rivian (NASDAQ: RIVN) entered the electric vehicle (EV) market with hopes of rising to the upper echelons of the industry. But since its public debut, Rivian has fallen on tough times.

With mounting expenses and an inability to turn a profit, Rivian's path to a growth story like Tesla's is becoming less likely by the day. When accounting for market trends, such as weakening sales projections in 2024 and ever-increasing competition, Rivian's chances of rising to become a company of Tesla's prominence appear slim.

In Rivian's defense, it's often overlooked that Tesla struggled to run a profitable business for most of its history. Its first full year of profits didn't occur until 2020, nearly a decade after its IPO. From this angle, Rivian's lack of profits is nothing surprising. Call it par for the course.

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Source Fool.com