Rivian Just Followed Lucid's Most Criticized Growth Playbook and Investors Should Take Note
Yahoo Finance ·
When the year began, I named Rivian ( RIVN -4.28% ) my top growth stock for 2026. The thesis was simple: Rivian's growth journey has become much more lucrative, yet the stock continues to trade at a discount to competitors like Lucid Group ( LCID -3.76% ) and Tesla across several key valuation metrics. In the past, Rivian was viewed mostly as an electric vehicle (EV) stock . Indeed, the company now produces three electric vehicles: the R1S, R1T, and R2 SUV. But the company's future doesn't rest solely on vehicle manufacturing. Instead, Rivian has positioned itself as an artificial intelligence (AI) stock . The company expects to ramp up its AI investments so significantly that management quietly dropped its 2027 profit guidance earlier this year. Overall, I'm a big fan of Rivian pushing out its profitability goals in order to invest more aggressively in AI technologies. In the future, EVs will rely heavily on self-driving software. A vehicle's ability to drive itself will fuel not only consumer purchases but also commercial opportunities such as robotaxis. If an EV maker wants to sell into both markets, it will need to have fully self-driving vehicles . AI is these companies' best chance of achieving full autonomy and, in the future, selling cars. The catch is that Rivian has been forced to do something painful, something Lucid investors understand all too well.
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