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Daniel Miller, The Motley Fool
Wed, June 24, 2026 astatine 9:35 AM CDT 4 min read
Roughly a decennary ago, investors who either missed Tesla's high-risk, uncertain, rapid-growth signifier and high-flying valuation oregon didn't judge successful it spent overmuch clip trying to find the "next Tesla." Then galore besides missed BYD's accelerated rise.
Fast-forward to today, and galore wonderment whether Rivian Automotive (NASDAQ: RIVN) oregon Lucid Group (NASDAQ: LCID) could present lucrative returns arsenic the electrical conveyance (EV) marketplace dilatory gains traction successful the U.S. market. Some investors comparison the 2 EV makers' top-line growth.
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But which of these two, young EV makers is winning the contention that actually matters?
Top-line momentum
Lucid had a bumpy opening to its history, marred with supplier disruptions and accumulation hiccups, sprinkled with recalls on the way. Then Lucid began smoothing retired operations and enactment unneurotic an awesome streak of 8 consecutive record-setting quarterly transportation totals. That streak ended, conscionable falling abbreviated by a fistful of vehicles successful the archetypal 4th of 2026, but the surge helped the young automaker lucifer rival Rivian successful top-line maturation implicit the past 3 years.
Investors person crushed to judge some EV makers' top-line maturation volition continue, arsenic Lucid is inactive accelerating the accumulation and deliveries of its latest launch, the Gravity SUV, and Rivian is doing the aforesaid with its perchance groundbreaking R2. Lucid's and Rivian's top-line maturation is surely a communicative and 1 to support an oculus on, but really, the contention that matters is gross profitability improvements. That contention has surely favored Rivian.
The contention that matters
Gross profitability, particularly for young companies specified arsenic Lucid and Rivian, is incredibly important to investors due to the fact that it measures the halfway ratio of the accumulation process. It shows you precisely however overmuch worth remains from income aft covering the nonstop costs of creating the product. If a young institution can't marque accordant advancement connected that aspect, there's small anticipation it'll ever churn retired existent bottom-line profits oregon semipermanent returns for investors.
Put much simply: Achieving gross profitability, oregon astatine slightest accordant improvement, proves to investors the institution is simply a viable semipermanent investment. As you tin spot successful the graph, Rivian is turning this contention into a communicative of the tortoise and the hare.
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