Latest news with #RivianAutomotive
Yahoo
2 days ago
- Automotive
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than NuScale Power 10 Years From Now
NuScale Power has a market cap of $11 billion and generates close to zero in revenue with no products coming down the line. Rocket Lab is a fast-growing space flight company. Rivian Automotive is a disrupter in the electric vehicle space. 10 stocks we like better than Rivian Automotive › Nuclear power is all the rage right now. NuScale Power (NYSE: SMR) has a market cap of $11 billion, and its stock is up 360% in the last 12 months. Hype is growing for this resurgent energy solution to help match demand from data centers and artificial intelligence, which are growing like gangbusters. However, risks abound for investors in this pre-revenue stock with a market cap above $10 billion. Here are two other industrial stocks I predict will be worth more than NuScale Power 10 years from now. First up, we have Rocket Lab (NASDAQ: RKLB), which has around the same market cap as NuScale Power. The first advantage Rocket Lab has over NuScale Power is the fact that it actually generates revenue. That's not a high bar, but a clear distinction that needs to be made. It is a disruptive rocket launch and space systems company nipping on the heels of SpaceX's dominant market share in the industry. With the Electron rocket, Rocket Lab regularly performs trips for commercial customers and the United States government, executing 59 successful launches and having 31 planned missions currently in its pipeline. It is the only company besides SpaceX to consistently launch payload rockets for customers, which they pay a pretty penny for. Besides rocket launches, Rocket Lab is working to build the systems that companies actually launch into space. This includes communication systems, solar panels, and payload vehicles. Over the long term, it is aiming to build its own constellation of satellites, although what it aims to do with these satellites is unclear. In the future, Rocket Lab will debut its Neutron rocket system, which is much larger than the Electron, translating into higher revenue per launch. Today, the company generates $466 million in revenue. Over the next few years, Rocket Lab has a chance to greatly grow its sales with the debut of the Neutron, expansion of its space systems, and working through its current product backlog of over $1 billion. This will get the company on a trajectory to be a much larger stock than NuScale Power in 10 years. A second stock that will be larger than NuScale Power in 10 years is Rivian Automotive (NASDAQ: RIVN). This is a fallen angel in the electric vehicle space aiming to get its mojo back with new product launches. The stock is down 92% from all-time highs after its much-hyped initial public offering (IPO). Rivian debuted in the electric vehicle sector with premium trucks and SUVs. This limited its addressable market. Stagnating deliveries to customers have followed. Reviews say it has a great car, just not one for a wide audience that can afford a vehicle that costs upwards of $100,000. Next year, it is aiming to launch the R2, a mid-size SUV with a much more affordable cost of $45,000. This should greatly increase Rivian's annual deliveries to customers, which are currently hovering below 50,000. Without this scale, Rivian will struggle to generate positive cash flow. Free cash flow has improved in recent years but was negative $1.86 billion over the past 12 months. A scaled-up Rivian Automotive can grow its annual revenue from $5 billion to between $15 billion and $20 billion, and eventually higher over the long term, with vehicles that appeal to mass audiences. Profit margins will be slim, as with all automotive businesses, but this should lead to at least $1 billion in annual earnings (an approximate 5% margin at $20 billion in revenue), which will easily help it obtain a larger market cap than NuScale Power in 10 years. Being larger than NuScale Power in 10 years will be simple. It may look like a large company today with a market cap of over $11 billion, but this is a pre-revenue company. All of its revenue today is from contracts to plan on building its products; they come with no positive unit economics and can be considered a wash from costs. It generates zero dollars in revenue today. If its plans for nuclear energy development and its small modular reactors come along on schedule, it will not generate any revenue until 2030. Even so, it will probably be negligible revenue, given how its projects are essentially tests for the modular technology. It has not been proven yet that this technology can work economically or much better than large reactors. A previously committed project in Utah was canceled because of delays and cost overruns. NuScale Power talks a big game, but it keeps kicking the can down the road when it comes to actually building and deploying a product. I don't expect this to change over the next 10 years this is a dangerous stock to buy and one headed much lower in the years to come. For this reason, stocks such as Rivian and Rocket Lab are better bets and should be larger than NuScale Power in market capitalization 10 years from now. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than NuScale Power 10 Years From Now was originally published by The Motley Fool Sign in to access your portfolio
Auto Blog
3 days ago
- Automotive
- Auto Blog
The $45,000 EV That Could Change Everything: Latest Rivian R2 Details Unveiled
Learn more about how Rivian is innovating its R2 mid-size SUV scheduled for release during the first half of 2026. Curious to hear the latest on Rivian's R2? Rivian announced its new R2 midsize SUV in March 2024, and now, the electric automaker has updated an eager public on the model's progress leading up to its planned launch during the first half of 2026. The car manufacturer's newest information on the R2 includes insider looks at the SUV's design studio, powertrain test lab, and electrical lab. Previous Pause Next Unmute 0:00 / 0:09 Audi A5 replaces A4: So, what's changed? Watch More Inside Rivian's design studio According to Rivian, its in-house design studio spent hundreds of hours creating sketches to form the R2. Rivian described the design studio as a space where creativity meets feasibility, and one of its primary challenges with the R2 was acknowledging and working with its cost constraints without compromising appeal. The automaker's design studio works on and approves solitary segments ahead of time so that there are 'no surprises at the end,' with smaller elements like a glovebox receiving high amounts of individual attention. All about the R2's drive unit, Maximus The powertrain test lab's highlights featured a closer look at Maximus, Rivian's in-house next-generation drive unit primarily serving in its upcoming R2 and R3. Improvements from the last drive unit, Enduro, include Maximus' smaller size, lighter weight, lower cost, and simpler manufacturing from reducing its fasteners by 30%. Maximus' inverter converting direct current (DC) energy to alternating current (AC) energy is now side-mounted, providing additional clearance for the lower R2. Rivian noted that the R2's drive unit uses a continuous winding e-machine, generating higher performance and further simplifying manufacturing by reducing the number of welds. According to its manufacturer, Enduro is 40% more power-dense than its predecessor, much cheaper, and easier to build—all of which facilitate scaling, something Rivian struggled with while producing its R1T and R1S models. Rivian said Enduro was its first drive unit to go immediately to hard tooling, meaning it went straight from digital designs and engineering to building production-ready manufacturing tools used for high-volume creation. Maximus is undergoing month-long testing in extreme high and low temperatures along with simulated rainfall conditions. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. How Rivian's electrical lab helps form an R2 Rivian's electrical lab works on the R2's stack, or integrated hardware and software acting as the vehicle's brain. The automaker has spent the last few years vertically integrating its tech, and zonal architecture organizing electronics by location helps it design a stack entirely in-house. Rivian uses a midsize platform lab car for active R2 development and testing, where it can evaluate harnessing, endpoint devices, and everything on the low-voltage side that code from the SUV's brain touches. A Rivian mule bridges the midsize platform lab car stage and design validation builds just before mass production. One of Rivian's mules, 3.2, shows seats, screens, motors, and more that will be represented on the design validation build while still allowing design accessibility. Source: Rivian Final thoughts Last month, reports emerged that Rivian remains on track to sell the R2 for $45,000. A newly completed extension will house R2 production at the automaker's Normal, Illinois plant. LG Energy Solution's batteries for the R2 will initially come from South Korea before being sourced from LG Energy Solution's new Arizona factory. About the Author Cody Carlson View Profile
Globe and Mail
3 days ago
- Automotive
- Globe and Mail
TSLA's Legacy or RIVN's Promise: Which EV Story Holds Up Better Now?
Tesla, Inc. TSLA and Rivian Automotive RIVN are two noted names in the electric vehicle (EV) space — one is an established giant, the other a young and ambitious startup. Tesla changed the game years ago, creating massive wealth for early investors when EVs were still a niche bet. Back then, it was the clear frontrunner in a wide-open market. But times have changed. The EV landscape is now crowded, Tesla's sales are showing signs of weakness, and its once-dominant brand doesn't shine quite as brightly. The company still holds the title of the world's most valuable automaker—by a wide margin—but it's not without problems. Rivian, meanwhile, is still in its early chapters. This California-based company has bold plans and solid products, but it's also deep in the red, grappling with losses and high cash burn, typical of most fast-growing startups. Over the past six months, shares of Tesla have underperformed Rivian. With growing uncertainty around EV policy under Trump's presidency, the road ahead could be bumpy for both players. So, between Tesla's legacy and Rivian's potential, which stock deserves your attention now? Let's take a closer look. The Case for Tesla Tesla's position in the EV market isn't as untouchable as it once seemed. After reporting its first-ever annual delivery decline in 2024, the company entered 2025 on shaky ground. First-quarter deliveries fell 13% year over year, with steep drops in key regions like Europe and China. Lower volumes, paired with aggressive discounting, have also eaten into profits. Automotive margins slipped to 11.3% in the last reported quarter, down from 15.5% in the first quarter of 2024. Tesla is no longer the only game in town. Legacy automakers are stepping up their EV offerings, while newer players continue to chip away at Tesla's lead. As a result, Tesla's U.S. EV market share has dropped below 50%, down from 63% in 2022. Simply put, it's the only major EV maker with real market share to lose. CEO Elon Musk has already lowered growth expectations. After initially guiding for 20–30% vehicle delivery growth in 2025, Tesla has pulled back and hasn't even reaffirmed the modest growth outlook. With uncertainty around global tariffs and ongoing weakness in China, investors are still waiting for clarity on this year's targets. That said, Tesla isn't without bright spots. Its Energy Generation and Storage division has quietly become its most profitable segment, with energy storage deployments growing at a staggering 180% CAGR over the past three years. In 2024, deployments jumped 113%, and they're expected to grow by at least 50% this year too. Tesla's charging business also holds promise, supported by its 65,000+ Supercharger connectors worldwide. The biggest wild card is Tesla's upcoming robotaxi event, set for June 22. But with the company's history of delayed rollouts and bold promises, investors should keep expectations in check as challenges around safety, regulation and the complexity of full autonomy still loom large. Take a look at how TSLA's earnings estimates have been revised over the past 90 days. The Case for Rivian Rivian's growth story has hit a few bumps lately. The EV startup delivered 8,640 vehicles in the first quarter of 2025, down sharply from 13,588 units in the same period last year. Citing macro uncertainty and the potential impact of tariffs, the company trimmed its 2025 delivery forecast to 40,000-46,000 units, down from its previous guidance and below the 51,579 vehicles it delivered in 2024. Still, Rivian isn't backing down. The company is doubling down on its long-term vision, with a key focus on its upcoming R2 model—an affordable electric SUV priced at around $45,000 (much lower than the premium R1 lineup). Set for launch in 2026, the R2 is designed to broaden Rivian's appeal and significantly reduce its production costs. The company expects this new platform to bring major efficiency gains, lower fixed costs per unit, and speed up its path to profitability. There are already signs of improvement. Rivian reported a positive gross margin of 17% in the latest quarter — just the second time it's managed that. Some of this came from its partnership with Volkswagen, which will help co-develop Rivian's next-gen software and electrical architecture, beginning with the R2. Operationally, things are seemingly trending in the right direction. Thanks to engineering tweaks, supply chain improvements and lower input costs, Rivian's 2024 EBITDA loss narrowed by 29% to $2.7 billion. For 2025, the company expects losses to shrink further to $1.7–$1.9 billion. That said, cash burn remains a real concern. Rivian's cash balance fell to $4.7 billion at the end of the last reported quarter, down from $5.3 billion. Capital spending is rising. The company now expects to spend up to $1.9 billion this year, which will likely put more pressure on near-term financials as it chases scale and prepares for the R2 rollout. Take a look at how RIVN's earnings estimates have been revised over the past 90 days. Bottom Line At the moment, neither Tesla nor Rivian stands out as a strong buy. Both stocks carry a Zacks Rank #3 (Hold), reflecting near-term uncertainty and a mixed risk-reward setup. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Tesla continues to generate profits and has built strong infrastructure around energy storage and charging. However, its core EV business is slowing, growth targets are in question, and high expectations around self-driving tech may take longer to play out—if at all. Its valuation already prices in a lot of future success, making the risk-reward less compelling. Rivian, on the other hand, is a higher-risk, higher-reward play. It's still far from profitability and burning through cash, but its upcoming R2 SUV could be a game-changer if the company executes well. Scaling up production and achieving positive cash flow will be critical and challenging. For now, both stocks require patience. But if we had to pick one based on future potential and valuation reset, Rivian edges ahead. It's a speculative bet, yes, but one with significant upside if the R2 delivers on expectations. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Tesla, Inc. (TSLA): Free Stock Analysis Report Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report
Yahoo
6 days ago
- Automotive
- Yahoo
Trump's Bill Would End EV Subsidies: Is Rivian in Trouble?
Rivian is prepared to grow sales significantly regardless of tax incentives. But eliminating tax incentives could have an odd effect on Rivian's competitiveness. 10 stocks we like better than Rivian Automotive › Rivian Automotive (NASDAQ: RIVN) has a very promising future. Starting in early 2026, management expects to start production of three new affordable electric vehicles (EVs). Making affordable EVs priced under $50,000 is a huge milestone for an automaker. When Tesla released its affordable Model Y and Model 3 vehicles, sales boomed. Today, those two vehicles account for more than 90% of Tesla's auto sales. Some recent news, however, could be a giant blow to Rivian's growth plans. President Donald Trump's new bill proposes cutting federal EV tax credits, which would make electric vehicles $4,000 to $7,500 more expensive to buyers. How much will Rivian suffer? The answer might surprise you. Many investors are looking over electric car stocks to find the next Tesla. It's a worthy mission. Tesla shares have risen 23,000% in value since 2010. What's the key to spotting the next Tesla? Look for companies that can launch affordable models priced under $50,000. As mentioned, reaching this milestone creates a gigantic growth catalyst, making the automakers' models affordable to tens of millions of new buyers. Right now, Rivian is right on track. After releasing two luxury models with premium price tags -- very similar to what Tesla achieved with its Model S and Model X vehicles -- Rivian is preparing to start production of three new affordable models: the R2, R3, and R3X. Production is slated to begin in early 2026, but I'm not expecting full production of all three models until 2027 or 2028. Still, there's no doubt that Rivian is prepared to hit its biggest growth milestone in years. With $4.7 billion in cash on the books, plus a deal with Volkswagen that could deliver several more billion dollars in capital, Rivian looks like it has the means to get these vehicles to market. That will allow sales to surge, and also provide significantly more operational leverage, likely improving profit margins. Regardless of whether the EV tax credits are eliminated, Rivian has the capital to reach this growth catalyst, meaning sales growth should be expected whatever the future brings. Right now, Rivian's vehicles are priced between $70,000 and $100,000 depending on the exact package. If the company can price three new vehicles under the $50,000 mark, that makes its lineup significantly more affordable even without a tax incentive. In fact, eliminating the EV tax credit could end up helping Rivian long-term. It should be stressed that Trump's bill to eliminate EV tax credits is only a bill right now. It has a long way yet to becoming law. But if these eliminations are put into place, expect EV demand to drop over the near term. EVs are already struggling to maintain cost competitiveness versus gas or diesel engines. Adding $4,000 to $7,500 to the final cost should eliminate many potential buyers, especially those seeking long-term cost savings. Rivian also generates "free" income by selling automotive regulatory credits -- a major factor in the company achieving positive gross margins in recent quarters. Like Tesla, however, most of these credits are earned by state programs like California's, making them unlikely to be cut anytime soon. The important thing to note here is that most North American automakers don't yet have an affordable electric vehicle on the market, though most are trying. Consider Lucid Group, which aims to release several new mass market vehicles over the coming years. The company has less than $2 billion in cash on the balance sheet, and will almost certainly need more capital to get these cars to market. If its existing luxury models become even more expensive, that could lower demand and access to capital, making it harder for the company to actually get its affordable models to market. It's very possible the company could face severe financial uncertainty should these tax incentives be eliminated. Rivian, meanwhile, is already profitable on a gross margin basis, unlike Lucid, though it does partially rely on federal automotive regulatory credits to achieve this.. It's also much further along in the development of its affordable models than Lucid, making it much more likely it actually gets these models to market. If other competitors struggle financially due to lower EV tax incentives, it's possible Rivian could gain long-term. However, it should be noted that over the short term, Rivian should take a direct demand hit. The result is a mixed bag for Rivian. Demand would fall near-term due to higher costs for consumers. But a lessening of competition and investment by peers like Lucid Group could open up more long-term market share. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy. Trump's Bill Would End EV Subsidies: Is Rivian in Trouble? was originally published by The Motley Fool
Yahoo
13-06-2025
- Automotive
- Yahoo
Tesla Stock Crash: Time to Rotate and Buy Rivian Instead?
Tesla stock took a big dip in June as CEO Elon Musk and President Donald Trump argued over pending legislation. Tesla's market share is sinking, but Rivian is not picking up the gains. Rivian is a risky stock as the company bets on an upcoming cheaper model to drive growth in sales and deliveries. 10 stocks we like better than Rivian Automotive › The markets saw history made earlier this month after President Donald Trump and Tesla (NASDAQ: TSLA) CEO Elon Musk had a disagreement over public policy via social media in front of the whole world. As a result, Tesla's stock lost about $150 billion in market capitalization in a single day (a new company record). The stock has recovered a bit of that 15% drop, but it is still down about 6% just since the end of May. It would seem that investors are getting increasingly pessimistic about Tesla's future. Its financials and leading trends look ugly right now. If you are an investor interested in owning electric vehicle (EV) stocks, does the recent fall by Tesla mean it's time to move to buy competitors such as Rivian Automotive (NASDAQ: RIVN) instead for your portfolio? Let's take a closer look at this smaller EV upstart and see if an answer presents itself. Since its peak in 2022, Tesla has begun to lose market share of EV sales in the United States. According to Car Edge, Tesla's estimated market share of U.S. EV sales fell from 75% in early 2022 to under 45% in the first quarter of 2025. These market share struggles are being seen in other large EV regions like Europe and China as well, although Rivian does not sell in those countries. The market share losses come at a time when Rivian has finally brought its EV products to market. These include a premium truck, SUV, and a commercial electric van (mainly sold to Amazon). However, if we look at market share estimates in the United States, Rivian is only at 2.9% of total EV sales in Q1 2025. This is actually down from a peak of 5% in Q3 2023. Tesla's market share losses have not gone to Rivian. Rather, they are going to legacy players upping their EV game, such as General Motors. Why is Rivian still so small? For one, the entire EV market has stalled in the United States. Plus, Rivian sells expensive vehicles with price points around $100,000 when including full upgrades. The vehicles have great reviews, but they are only affordable for a small segment of the United States population. In order to grow its market share of EV sales, Rivian is investing quickly to build a more affordable EV for shoppers. It is working on a product called the R2, which is an SUV that will cost around $45,000 before upgrades, with plans to start deliveries to customers in 2026. This product pipeline is what investors are betting on when buying Rivian stock right now. The R2 is Rivian's big bet to help it gain market share with a wider set of customers in the United States. The company's deliveries to customers have stalled out and begun to fall, with guidance to deliver just 40,000 to 46,000 vehicles in 2025 compared to 51,000 in 2024. When the R2 comes out, investors should expect Rivian to grow its overall deliveries to hundreds of thousands a year in order to reach a large enough scale to generate positive cash flow. Rivian should get a growth boost when the R2 releases next year. Tesla's brand looks damaged and keeps losing market share, which will leave a lot of EV demand up for grabs for other brands selling cars in the $35,000 to $50,000 range. EVs still account for less than 20% of new car sales in the United States (when excluding hybrids), and I still believe the majority of new car sales will eventually be EVs in the future. This can be a rising tide that will help R2 deliveries soar in the years to come. Investors better hope the R2 is successful, because Rivian needs help to improve its business fundamentals. The company is burning around $2 billion in free cash flow a year, with a history of negative gross margins. Its gross margin did improve to positive 17% last quarter, but this was only the second quarter the margin figure was positive. Some of this boost was due to the company's partnership with Volkswagen, which is a good sign as Rivian tries to get its financials on the right track. Cash burn will likely continue as Rivian aims to scale up the R2 vehicle. However, it does have plenty of cash on the balance sheet and more funding on the way. There was $8.5 billion in liquidity at the end of last quarter, up to $3.5 billion coming from its Volkswagen partnership, and potentially $6.6 billion coming from a Department of Energy loan. This gives the company plenty of years left before running out of money. But is Rivian stock a buy? I'm not so sure. It is a high-risk bet, and shares may do well if the R2 is a major success. However, even at a market cap of $16.6 billion and a low stock price, Rivian stock is a high-risk investment to make because of the major downside risk if the company cannot execute and achieve positive free cash flow. With this in mind, smart investors should avoid buying the stock today. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool recommends General Motors and Volkswagen Ag. The Motley Fool has a disclosure policy. Tesla Stock Crash: Time to Rotate and Buy Rivian Instead? was originally published by The Motley Fool
