Tesla and Rivian Stock Declines
Tesla (NASDAQ: TSLA) shares have dropped approximately 30% since their peak in December, affecting other major electric vehicle (EV) stocks, notably Rivian (NASDAQ: RIVN), which has also lost about one-third of its value.
Rivian aims to launch its R2 SUV this month, beginning with employee deliveries and ramping up to external customers by summer 2023. The R2’s base price is expected to be around $45,000, similar to Tesla’s Model Y, which has been a top seller. Furthermore, Rivian plans to integrate artificial intelligence into its operations, which has garnered market interest.
In comparison, Tesla maintains a higher valuation, trading at roughly 13 times sales versus Rivian’s 3 times. Tesla’s strong investment capacity of around $20 billion and its existing infrastructure provide competitive advantages, particularly in the autonomously-driven vehicle market, which could be worth up to $10 trillion globally.
