Better Buy in 2024: Rivian or Tesla Stock?

The electric vehicle (EV) boom is losing momentum. After growing like gangbusters for several years, adoption in the United States and other markets is starting to slow. EV sales grew 42% year over year in the United States last November, down from 75% growth back in 2022. Even with major federal and local subsidies for buyers, EVs take significantly longer for dealerships to sell than gasoline-powered vehicles right now, with hybrids also growing quickly. Toyota -- which has embraced a mixed strategy of gasoline, hybrid, and electric vehicles -- has benefited from this divergence, with shares of its stock up 57% in the last year.

You can see this reflected in the stock prices of EV pure plays. Both (NASDAQ: TSLA) and Rivian Automotive (NASDAQ: RIVN) are down 20% in the last six months even though the S 500 has climbed higher and higher. However, contrarian investors know that short-term concerns can lead to buying opportunities for investors focused on the long term.

Do these price dips make either Rivian or Tesla stock a buy right now? Let's take a closer look.

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Source Fool.com