Better Buy: Tesla or Rivian?
Tesla (NASDAQ: TSLA) has been a winning investment over the last three years, but the stock's returns have stagnated recently. Even after a recent run-up, Tesla shares are down about 18% thus far in 2022.
That's because Tesla's valuation got ahead of the business. With other manufacturers of electric vehicles (EVs) just starting to ramp production, investors would love to find the next Tesla stock before its valuation gets ahead of itself. Some think Rivian Automotive (NASDAQ: RIVN) could be that name. But Rivian comes with plenty of risks and a very difficult road ahead for the company to succeed.
While Rivian's business is just beginning to get its legs, in many ways, Tesla is also. Tesla produced more than 930,000 EVs last year and believes it can grow that number 50% annually for several more years. As it ramps up two new factories, CEO Elon Musk has already said the company might pick a location for its fifth manufacturing facility before the end of this year.
Source Fool.com
