Better Buy: Tesla or Rivian?
Tesla (NASDAQ: TSLA) and Rivian Automotive (NASDAQ: RIVN) are two completely different investments right now. But there is one commonality between the two EV makers: The second quarter marks somewhat of a pivot point for their businesses.
Tesla just announced that second-quarter deliveries dropped sequentially for the first time. That has investors concerned about how net income and cash flow will be affected when Tesla releases its financial report on July 20. The news comes just as Tesla is ramping up production at two new plants. Rivian is also working to ramp up its initial production and has big plans for its future. Both stocks have dropped about 40% over the last three months, making this a good time for investors to see if one, or both, fits into their portfolios.
Tesla reported it delivered 254,695 vehicles in a second-quarter marred by pandemic-induced production delays at its Shanghai facility. Analysts following the company had already reduced projections from about 350,000 quarterly deliveries, but Tesla still came up a bit short of the more recent expectations.
Source Fool.com
