Among the several electric vehicle (EV) start-ups that took the markets by storm last year, Rivian (NASDAQ: RIVN) was the most hyped EV stock, with its initial public offering (IPO) turning out to be the largest in the U.S. since Meta Platforms' (formerly Facebook) IPO in 2012. Rivian's R1T pickup truck, after all, had already hit the roads even as EV leader Tesla (NASDAQ: TSLA) failed to start production of its Cybertruck in 2021 as planned.
Rivian, however, has struggled since, while Tesla continues to lead in the red-hot EV space. Yet, with Rivian stock plunging and losing almost twice as much value as Tesla this year, is it time to buy the EV start-up stock? Or are you better off investing in the stalwart to play the EV boom? Let's find out.
Howard Smith (Rivian): Rivian and Tesla are two completely different companies right now. Sure, they are both in the EV sector. But Tesla produced almost 1 million vehicles last year, while Rivian has only made about 5,000 since it started production late last year. Of course, investors have already recognized Tesla's success with the company valued at a market cap of nearly $700 billion, even with the stock well off its highs.
Source Fool.com