As the largest initial public offering (IPO) of 2021, Rivian (NASDAQ: RIVN) arrived on the electric vehicle (EV) scene with a bang. The company's luxury vehicles for outdoor enthusiasts filled a void lacking in the burgeoning EV market. With record-level hype, Rivian raised nearly $12 billion by going public, making it the largest U.S. company IPO since in 2012.

But since its debut on the Nasdaq, business has been tough for Rivian. Based on recent earnings reports, the company has yet to turn a profit and lost an average of $32,000 per vehicle sold, resulting in gross profit margins of -35%. Without generating income, Rivian operates solely off the funds it raised in 2021 and has seen its cash position decline by more than 50% in just two years.

While production and revenue are trending in the right direction, Rivian remains an increasingly risky bet for investors looking for EV market exposure. This isn't to say Rivian won't survive this tumultuous period, but rather than putting your portfolio at risk, there are two better options investors should focus on.

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Source Fool.com