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Ford Outperforms Rivian Amid EV Market Competition
Ford Motor Company (NYSE: F) is outperforming the S&P 500 this year, benefiting from its strategy of assembling over 80% of its vehicles in the U.S. This positions it favorably in the current tariff environment, expecting to incur a $2 billion tariff bill, substantially less than competitors like General Motors. In contrast, Rivian Automotive (NASDAQ: RIVN) reported a net loss of $541 million in Q1 2025, despite improvements from a $1.44 billion loss in Q1 2024 and achieving a gross profit of $206 million for the same period.
Rivian’s strategic partnership with Volkswagen, which includes a $5 billion investment, adds potential for future growth while also imposing significant costs for expansion. Ford, with a modest earnings multiple of 14 and a dividend yield of approximately 5.43%, is viewed as a more stable investment amidst ongoing challenges in the auto industry. Analysts recommend Ford as a safer and more appealing choice in the EV sector compared to the speculative nature of Rivian.
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