Key Points
Rivian Automotive (NASDAQ: RIVN) is trading at a price-to-sales ratio of 2.9, significantly cheaper compared to Tesla’s 15.8 and Lucid Group’s 3.3. Despite its present valuation, Rivian is expected to see a substantial boost in growth in 2026 with the release of its first mass-market vehicle, the R2, among three new models priced under $50,000. Currently, analysts predict only 6% sales growth for Rivian in 2026, which many believe is conservative given the potential demand for affordable EVs.
Rivian has faced stagnating growth recently, leading to a sharp decline in its valuation. However, with the anticipated launch of the R2, which follows a pattern seen with Tesla’s affordable models, Rivian’s growth could accelerate, possibly improving its valuation significantly. In comparison, Tesla continues to dominate the EV market with established brand recognition and financial resources, creating a considerable gap between the two companies.
