Lucid Group, Inc.

Key Points
Rivian recently began deliveries of its R2 fleet while raising its full-year delivery guidance.
Lucid replaced most of its executive team this year in an effort to increase accountability and improve execution.
Both EV stocks have been badly depressed over the past few years.
It'll be a busy couple of weeks for investors in Rivian (NASDAQ: RIVN) and Lucid (NASDAQ: LCID), as both companies are due to report second-quarter earnings.
Both have released preliminary delivery results, giving investors a peek at what to expect. Let's have a look at these electric-vehicle pure plays and see which is the better long-term buy.
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Rivian on a roll?
Rivian reported it delivered 12,194 vehicles in the second quarter, a substantial increase from 10,661 a year ago. It also produced another 12,613 cars at its Illinois plant. Management raised its full-year delivery guidance to 65,000-70,000 EVs.
Investments and partnerships from Volkswagen and Uber also help Rivian's bottom line and future revenue prospects. Successful testing led to a $1 billion investment from Volkswagen last quarter. The Uber partnership should yield up to 50,000 fully autonomous robotaxis. Furthermore, Rivian's software and services division is already profitable and is narrowing the automotive division's losses.
Still, the stock is down more than 16% year to date and has lost more than 80% of its all-time value. Rivian is trading at about 3.6 times its sales.
Lucid is shaking things up
Lucid isn't as large a company as Rivian, but it's still gaining traction and increasing its deliveries and production. The company delivered 3,953 vehicles, a 20% year-over-year increase, while producing 4,774 more vehicles in Q2.
Lucid has had a few hiccups lately, including a seat supplier issue that delayed deliveries and a sweeping change in executive leadership. The company now has a new CEO, CTO, CFO, and chief customer officer. The new CEO, Silvio Napoli, is aiming to simplify the business and organization.
Lucid's stock has been badly beaten down. Shares have declined more than 90% in the past five years.
Which is the better buy now?
Both Rivian and Lucid remain unprofitable, but right now, Rivian is the stronger company and a buy for long-term investors. Lucid's stock is inexpensive, but Rivian is showing it can execute at scale and has a clear roadmap.
The successful launch of the R2 fleet that moves the company into a more mainstream market, along with an expanding manufacturing capacity, a robotaxi partnership with Uber, and even a connectivity deal with AT&T, are all levers for growth.
Lucid simply has more headwinds than Rivian at this point. The company is facing a class action lawsuit in addition to its operational challenges. This adds considerable pressure on the company and poses a significant reputational risk.
Rivian has more cash, giving it a longer runway. Lucid absolutely has upside potential, but it's more speculative and has greater execution risk. Rivian's diversified offerings, including consumer EVs, commercial contracts, and technology licensing, give it a competitive advantage.
Should you buy stock in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group 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 $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
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Catie Hogan has positions in AT&T and Rivian Automotive. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rivian Reports Earnings on July 30, Followed by Lucid on Aug. 4. Here's the Better Buy Now.

Key Points
Lucid's stock has shed more than 70% of its value over the past year.
Bargain-hunters are starting to take notice.
Shares of Lucid Group (NASDAQ: LCID) leaped on Tuesday after a notable investor disclosed a large position in the luxury automaker.
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A royal vote of confidence
Prince Alwaleed bin Talal bin Abdulaziz al Saud, a member of the Saudi royal family, reported ownership of 19.5 million shares of Lucid on July 28. With Lucid's stock now trading near $7.90 per share, that stake is valued at over $154 million.
Prince Alwaleed has a net worth of approximately $23 billion, according to Forbes. He's often referred to as the "Arabian Warren Buffett" due to his impressive multi-decade investment track record.
Risks remain
News of Prince Alwaleed's investment comes at an opportune time. Lucid's stock price has shed nearly three-quarters of its value over the past year.
The electric vehicle (EV) maker is dealing with the loss of federal tax credits for EV purchases, which expired on Sept. 30.
Moreover, the automaker remains deeply unprofitable as it ramps up production. Lucid generated an operating loss of $989 million in the first quarter.
Still, investors are viewing Prince Alwaleed's stake in Lucid as a vote of confidence for the EV upstart, and many decided to buy alongside the billionaire.
Should you buy stock in Lucid Group right now?
Before you buy stock in Lucid Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Lucid Stock Soared 21.5% Today

Investors eyeing a purchase of Lucid Group Inc (Symbol: LCID) stock, but cautious about paying the going market price of $6.61/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the December 2027 put at the $3 strike, which has a bid at the time of this writing of $1.13. Collecting that bid as the premium represents a 37.7% return against the $3 commitment, or a 27.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to LCID's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $3 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Lucid Group Inc sees its shares decline 54.7% and the contract is exercised (resulting in a cost basis of $1.87 per share before broker commissions, subtracting the $1.13 from $3), the only upside to the put seller is from collecting that premium for the 27.1% annualized rate of return.
Below is a chart showing the trailing twelve month trading history for Lucid Group Inc, and highlighting in green where the $3 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the December 2027 put at the $3 strike for the 27.1% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Lucid Group Inc (considering the last 251 trading day closing values as well as today's price of $6.61) to be 79%. For other put options contract ideas at the various different available expirations, visit the LCID Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 2.42M contracts, with call volume at 2.42M, for a put:call ratio of 0.72 so far for the day, which is above normal compared to the long-term median put:call ratio of .65. In other words, if we look at the number of call buyers and then use the long-term median to project the number of put buyers we'd expect to see, we're actually seeing more put buyers than expected out there in options trading so far today. Find out which 15 call and put options traders are talking about today.
Further LCID Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Commit To Buy Lucid Group At $3, Earn 37.7% Using Options

Key Points
Shares of Tesla are down over 30% in 2026.
The company's operating income fell 57% in the second quarter, while free cash flow turned negative.
Even with shares of Tesla (NASDAQ: TSLA) down over 30% this year, I'm still not ready to buy the stumbling stock. It's been a brutal 2026 for Tesla's investors, but the stock is still trading at an incredible premium, with its trailing P/E ratio sitting around 290. Simply put, the company's valuation of more than $1 trillion leaves little to no room for error.
Tesla reported its second-quarter earnings last week, and while revenue and deliveries reached record levels, the electric vehicle company's operating income was slashed by 57% year over year, causing the operating margin to collapse to 1.4%.
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Non-GAAP (adjusted) earnings per share missed analysts' consensus badly, coming in at just $0.33 per share compared to the expected $0.53. Tesla's free cash flow also turned negative as spending on AI, robotics, and autonomous initiatives increased substantially.
Understandably, Tesla is investing heavily in itself, but the problem is these decreases in operating income and margins aren't happening to a stock that's priced reasonably. Tesla's side projects, including robotaxis, full self-driving, and Optimus, aren't close to generating profits, either.
Tesla has big ambitions, and I'm confident the company will reach most of its stated goals, but it feels like most of these future revenue streams are already baked into Tesla's current stock price. There isn't enough upside potential right now, even with the recent substantial dip.
Tesla is an innovative brand, but I need to see the valuation reconnect to the reality of the current fundamentals before I'll be willing to make a long-term purchase. Moreover, rivals such as Rivian Automotive and Lucid are gaining traction in the U.S. and are fairly priced. While these competitors won't overtake Tesla anytime soon, it's yet another challenge that Musk's company is going to have to tackle in the coming years.
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Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $537,140!*
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Catie Hogan has positions in Rivian Automotive. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tesla Is Down 30% This Year. Here's Why I'm Still Waiting on the Sidelines.

Key Points
Tesla's robotaxi division is struggling to grow.
Tesla's struggles may portend trouble for Rivian and Lucid Group.
Tesla (NASDAQ:TSLA) stock sank nearly 15% in value this week after reporting quarterly earnings. Clearly, the market disliked what it heard from the company’s management team, including CEO Elon Musk. But there was some good news tucked into the data-packed announcement.
On the positive front, Tesla’s sales rose 26% year-over-year to $28.24 billion, beating most Wall Street estimates. Gross margins, however, slid from 19.2% in the first quarter to 16.3%, reflecting weaker pricing power and various one-time charges. Weaker margins hurt the company’s adjusted earnings per share, which came in at $0.33, below consensus estimates of roughly $0.50.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Most importantly, Tesla revealed surging capital expenditures, which shot higher 142% year-over-year to $5.8 billion. The company confirmed that capital expenditures for the year will exceed $25 billion to support its ongoing efforts to scale for AI compute, robotics, and chip manufacturing infrastructure. Surging capital expenditures weighed on free cash flow, which came in at negative $1.09 billion for the quarter.
Why did the market punish Tesla stock so harshly following earnings? The biggest concern deals with the pace and scale of its robotaxi division’s expansion.
Last year, Elon Musk told investors that its robotaxi service would expand at a "hyper-exponential rate". This quarter, however, Musk took a more cautious approach, warning of a slower-than-expected rollout. Analysts pushed back on the tone shift, with one pressing Musk on why the company’s robotaxi fleet was stuck “in the dozens as opposed to hundreds,” as previous guidance had predicted.
The market is clearly concerned about Tesla’s rising capital expenditures amid limited traction in growth markets like robotaxis. In other words, the market wants to see more from the company in exchange for higher spending.
Does Tesla’s robotaxi struggles portend trouble ahead for other EV stocks like Rivian (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID), both of which are expected to benefit from growth in the global robotaxi market? The short answer is yes, but the full answer is more complicated.
Here’s how the news from Tesla impacts Rivian and Lucid Group
Robotaxis are set to become a majorglobal market Some experts believe that robotaxis could ultimately become a $5 trillion to $10 trillion market. Tesla is primed to take a huge chunk of this market. Its business is largely vertically integrated, with an ability to both manufacture the physical vehicles and create the software necessary for operating a robotaxi fleet at scale.
Rivian and Lucid have slightly different exposures. For now, these two businesses are positioned as supplier to the robotaxi market rather than direct competitors.
Popular ridesharing service Uber Technologies (NYSE:UBER), for example, is investing aggressively to scale its robotaxi fleet. But Uber doesn’t have any internal manufacturing capabilities. So, it must purchase vehicles from other companies.
Image source: Getty Images
Earlier this year, Uber agreed to purchase up to 50,000 Rivian R2 SUVs in a $1.25 billion deal. Uber also forged a $500 million deal with Lucid for 35,000 vehicles.
Tesla won’t be buying robotaxi vehicles directly from Rivian or Lucid given it can produce its own vehicles. But Tesla’s inability to scale it robotaxi fleet is an indicator that the robotaxi industry in general may be experiencing scaling issues. And while Rivian and Lucid have growth catalysts besides selling robotaxis, their respective deals with Uber show how lucrative that end market can be for both companies long term.
In short, investors should pump the brakes on expectations for Lucid and Rivian’s robotaxi growth potential. Robotaxis will still be a lucrative market long term. But judging by Tesla’s struggles, the next year or two may be more difficult for Rivian and Lucid when it comes to benefiting from robotaxi operators need for more fleet vehicles.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $550,696!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $62,112!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $369,577!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 23, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Tesla’s Earnings Miss and Negative Free Cash Flow a Red Flag for Rivian and Lucid Investors?

Key Points
Rivian is investing more aggressively in AI technologies.
Higher investment needs require raising more cash.
When the year began, I named Rivian (NASDAQ: RIVN) 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 (NASDAQ: LCID) 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.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
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.
Rivian must copy this painful financing option that Lucid has come to rely on
Earlier this month, Rivian revealed that it would be selling 75 million additional shares at $15.50 apiece -- a slight discount to the prevailing market price. Underwriters have the option to buy another 11.25 million shares, which would increase Rivian's total outstanding shares by around 6%.
Rivian isn't a total stranger to share dilution. Its total shares outstanding have increased by more than 30% over the past three years to help make up for an unprofitable core business. But the company has also been able to raise non-dilutive financing, including its multibillion-dollar partnership with Volkswagen.
Lucid investors haven't been as fortunate. The company's total outstanding share count has risen far faster than Rivian's in recent years, driven by high capital expenditures alongside an even more unprofitable core business.
While painful over the short term, Rivian's share sale will raise around $1.2 billion in new capital. That could be enough to scale R2 production enough to reach sustainable profitability over the next handful of years. The company has already posted a positive gross margin in recent quarters.
If R2 production scales as expected, that could narrow losses for the company significantly, enabling Rivian to maintain its higher investment into AI. And given AI is a critical long-term growth driver, Rivian's latest share dilution is a painful but reasonable mechanism for maximizing shareholder value over the long term.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!*
Now, it’s worth noting Stock Advisor’s total average return is 908% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 23, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rivian Just Followed Lucid's Most Criticized Growth Playbook and Investors Should Take Note

Key Points
Archer Aviation is moving toward the commercial launch of its Midnight aircraft with significant backing from major airlines and defense agencies.
Lucid Group continues to scale its luxury electric vehicle production, supported by a massive purchase agreement with the Government of Saudi Arabia.
Which of these high-growth transport pioneers offers a better potential path for long-term investors in 2026?
As transportation undergoes a radical shift toward electrification, investors are weighing the potential of flying taxis against luxury electric cars. Choosing between Archer Aviation (NYSE:ACHR) and Lucid Group (NASDAQ:LCID) involves balancing visionary technology with financial durability.
Archer Aviation focuses on urban air mobility, aiming to launch commercial air-taxi networks in major global hubs. Lucid competes in the premium automotive market, prioritizing industry-leading battery efficiency and high-end design. Both companies represent high-risk bets on the future of how people move, though they operate in different regulatory and manufacturing environments.
The case for Archer Aviation
Archer Aviation develops electric vertical takeoff and landing (eVTOL) aircraft for commercial and military use. This growth among industrial stocks is anchored by an agreement with United Airlines Holdings (NASDAQ:UAL) providing for the conditional purchase of up to $1.0 billion in Midnight aircraft. The company also partners with the U.S. Air Force and Stellantis (NYSE:STLA) for manufacturing support.
In FY 2025, Archer Aviation reported revenue of $300,000. This early-stage revenue was accompanied by a net loss of approximately $618.2 million. This reflects a company still in its pre-commercial phase as it pursues aircraft type and production certification.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x. This ratio measures total debt, including short- and long-term obligations, against shareholders' equity, with a lower number indicating less reliance on borrowed money. Free cash flow was negative at $511.7 million, representing the cash remaining after operating and capital spending are covered.
The case for Lucid Group
Lucid Group manufactures luxury electric vehicles, including the Air sedan and the Gravity SUV, through direct-to-consumer channels. Its most significant customer relationship is with the government of Saudi Arabia, which has a 10-year agreement to purchase up to 100,000 vehicles. The company also works with Uber Technologies (NYSE:UBER) and Nuro to develop autonomous robotaxi fleets, though this customer concentration adds a layer of risk to its long-term outlook.
In FY 2025, revenue reached approximately $1.35 billion, which represents growth of more than 67% compared to the previous year. Despite this significant top-line growth, Lucid reported a net loss of roughly $3.7 billion, reflecting the high costs of automotive production and ongoing research and development at this stage.
According to the December 2025 balance sheet, the debt-to-equity ratio is nearly 1.2x. This means the company uses slightly more debt than equity to fund its capital-intensive operations. Free cash flow was negative $3.8 billion for the fiscal year.
Risk profile comparison
Archer Aviation faces significant regulatory hurdles, as it depends entirely on the FAA and other agencies for aircraft certification. Delays in receiving these approvals for the Midnight aircraft could indefinitely postpone the start of commercial revenue. Additionally, the company must prove it can successfully scale high-volume manufacturing in Georgia without previous experience in mass production, while also navigating complex legal disputes with competitors like Joby Aviation (NYSE:JOBY).
Lucid struggles with financial instability and a high cash burn rate, which has led to litigation and market volatility. The company also faces operational risks from leadership changes and historical manufacturing delays at its Arizona and Saudi Arabian facilities. Competition from established automakers like Tesla Inc (NASDAQ:TSLA) or luxury brands such as Mercedes-Benz Group adds further pressure on sales, especially as high interest rates impact demand for premium vehicles.
Valuation comparison
Archer Aviation trades at a dramatically higher P/S ratio than Lucid, reflecting its extremely early stage of commercialization.
Metric
Archer Aviation
Lucid
Forward P/E
n/a
n/a
P/S ratio
1,890x
1.7x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
The federal government created the framework in 2025 for real-world testing of eVTOL aircraft, a concrete step toward making Archer's vision a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for Archer’s aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.
Archer is taking steps to refurbish a small Los Angeles airport for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. Future estimates are speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue, but a lot has to go right between now and then.
The major card Archer is holding is the purchase agreement with United Airlines to serve as taxis, extending the airline’s services. The contract isn’t guaranteed to be executed in full, however.
Meanwhile, Lucid has an agreement with Uber to provide 35,000 robotaxis, up from a previously announced 20,000, while Uber upped its investment in Lucid to $500 million from $350 million. The luxury EV maker said March orders jumped 144% from February this year, a bright light for the business, which still struggles with high cash burn. Still, sales gains are starting from a small base: its vehicle sales rate was just 43 units per day in 2025.
The Saudi agreement should pay dividends, with the company constructing a factory in the country that should ensure the government follows through on its orders. A focus on cutting operational costs should help, although Lucid is still expected to lose around $3.6 billion in fiscal 2026, while revenue grows about $600 million to $1.95 billion.
Both Archer and Lucid are EV pioneers in the early stage of their business plans. Archer’s price-to-sales is far too high to ignore at current prices, while Lucid’s very low P/S suggests it may be the better bet for 2026.
Should you buy stock in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation 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 $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 22, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Archer Aviation vs. Lucid: Which Electric Vehicle Stock Is a Better Buy in 2026?

Key Points
Rivian's capital discipline has kept shareholder dilution minimal compared to a key rival.
The R2 will help drive a major transition from luxury-niche to mass-market consumers and sales.
High-margin software business opportunities exist thanks to Rivian's advanced software stack and architecture.
About five years ago, there was a mini gold rush in the electric vehicle (EV) industry. It was due to growing infrastructure support and a flood of public and private funding from investors hoping to get their hands on what might be the next Tesla.
This gold rush ended poorly for many involved: from the more well-known Fisker Automotive, which was supposed to rival Tesla, to the lesser-known companies such as Canoo and Lordstown Motors. Even more capable companies, such as Lucid Group (NASDAQ: LCID), will almost certainly face more funding questions and capital raises within 12 to 18 months.
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Rivian Automotive (NASDAQ: RIVN), however, appears to be gaining real traction; here are three reasons to believe in it long-term.
Shareholder dilution
While Lucid and Rivian are similar in many ways, one factor that has separated the two is shareholder dilution. Unlike Lucid, Rivian has been able to protect its shareholders from more severe shareholder dilution due to capital discipline and its strategic joint ventures, such as with Volkswagen.
It also helps to have a little luck on your side. Rivian executed one of the largest initial public offerings in U.S. history by raising roughly $13.7 billion in gross proceeds, which gave the young EV maker a long capital runway. In contrast, Lucid entered the public markets through a SPAC merger that had a lighter cash balance to help pave the way forward.
Another example of how the two differ is that Lucid has relied heavily on Saudi Arabia's Public Investment Fund (PIF), which now owns a controlling stake in the company. While Lucid has repeatedly issued new equity that dilutes existing shareholders, Rivian largely took a different route by leveraging its internal software and electrical stack to ink a $5.8 billion deal with Volkswagen that has helped generate non-dilutive licensing and convertible loans.
You can see in the graph above that Lucid was expanding its shares outstanding much more, until last year when the EV maker executed a 1-for-10 reverse stock split, which reduced its share count to proportionately increase its share price, enabling it to remain listed on the Nasdaq. That's not a great situation to be in. Make no mistake, when considering either of these EV stocks long-term, Rivian is certainly more enticing, even considering only its lesser shareholder dilution.
R2 is a crucial pivot
To say that Rivian's R2 is a crucial pivot point for the business would be an understatement. The R2 marks Rivian's transition from luxury-niche EVs to mass-market production and scale. The young EV maker might not even get enough credit for the efforts it has taken to improve unit economics, which have helped power the company to its first full-year gross profit.
Rivian is taking what it's learned from that process and applying it to the R2. And it's expecting to reduce the manufacturing cost per vehicle by 50% compared to even previous improvements on the R1. Rivian's goal was to aim for nearly $7,500 in gross profit per vehicle; here are a couple of unique examples of how it can drive toward that target:
Battery and drive units: The new "Maximus" drive unit contains 41% to 43% fewer parts than the previous Enduro system.
Electronics and harnessing: Rivian cut expensive high-voltage cabling down by a significant 70% and simplified its computing architecture by removing 2.3 miles of wiring, cutting down connectors by 60%, and reducing weight by 40 lbs. Rivian even adjusted the R2 to a unibody structure, which reduced costs by 44% and weight by 37% compared to the R1 body-on-frame style.
Combine those examples, and many more, with growing scale as the lower price tag enables a mainstream consumer to purchase the R2, and it should have investors feeling optimistic that Rivian can one day be a self-funding and profitable company. Though it still has a long way to go.
High-margin potential
Circling back to Rivian's lucrative joint venture with Volkswagen, it's important for investors to understand the potential of this business. Typically, legacy global automakers like Volkswagen buy parts from suppliers and write their own coding, but the deal with Rivian implies that Volkswagen has admitted its deficiencies in doing so and essentially gave up on its in-house software division.
Volkswagen isn't just buying Rivian motors or interior infotainment screens, either; Rivian is essentially selling its German joint venture partner its vehicle nervous system, operating system, and zonal architecture. This has given Rivian the potential to transform from a pure hardware manufacturer into a business that includes high-margin software and intellectual property licenses.
Thanks in large part to Volkswagen's partnership, Rivian's software segment operates at roughly 37% gross margin, which has become a crucial way to offset early-stage scaling and expenses.
What it all means
Rivian still has a long road ahead to reward long-term shareholders, but these three reasons should give investors the belief that it can achieve that vision. Rivian has separated itself from rivals such as Lucid with capital discipline and the avoidance of severe shareholder dilution, tapped into high-margin software sales and cost-sharing with partnerships, and made significant progress on improving R2 unit economics ahead of the scale it hopes to soon build.
Rivian's road will still be tough, but it certainly has some unique attributes that separate it from many rivals.
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3 Big Reasons to Believe in Rivian Stock Long-Term

Key Points
Pershing Square's latest 13F filing lists just 11 stock positions worth a combined $13.7 billion.
The fund's top five holdings account for about 78% of the portfolio.
Brookfield, Amazon, and Uber together make up just over half of Ackman's portfolio.
Billionaire investor Bill Ackman runs one of the most concentrated portfolios in professional money management. His hedge fund, Pershing Square Capital Management, reported just 11 stock positions in its most recent 13-F filing, which covers its U.S. stock holdings as of March 31. Those positions were worth a combined $13.7 billion, and the top five of them accounted for about 78% of the portfolio.
That is an extraordinarily concentrated way to run a fund of this size. It also makes Ackman's portfolio unusually easy to study. When a manager owns this few names, every big position is a statement about where he sees value.
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So, where does Ackman see it? His three largest holdings, which together represent just over half of the portfolio, show how the famed investor is positioned for 2026 and beyond.
1. Brookfield
Ackman's biggest position is Brookfield (NYSE: BN), the Canadian investment giant that owns and operates infrastructure, renewable energy, real estate, and insurance businesses, along with a large asset-management arm. Pershing Square held about 59.7 million shares at the end of the first quarter, a stake worth about $2.4 billion, or 17.6% of the portfolio.
It's easy to see the appeal. Brookfield's distributable earnings before realizations, a measure of the recurring cash its businesses generate, rose 7% per share year over year in the first quarter and totaled $5.5 billion over the trailing 12 months. The company has also been returning cash to shareholders, saying in its May update that it had repurchased $470 million of its own shares in the open market so far this year.
2. Amazon
Ackman's second-biggest bet is Amazon (NASDAQ: AMZN), an 11.5 million-share position worth about $2.4 billion at the end of the first quarter, or 17.4% of the portfolio.
Amazon's recent results help explain why Pershing Square wants to own it. First-quarter net sales rose 17% year over year to $181.5 billion, and operating income climbed 30% to $23.9 billion. Even more, growth in the company's most profitable business is accelerating. Amazon Web Services (AWS) revenue grew 28% year over year during the period, which CEO Andy Jassy said was the segment's fastest growth in 15 quarters, as demand for artificial intelligence (AI) computing keeps building.
3. Uber
Ackman's third-biggest holding is Uber Technologies (NYSE: UBER), a position of about 30 million shares worth about $2.2 billion, or 15.7% of the portfolio.
Uber's first quarter showed why Ackman has stuck with the ride-hailing leader. Gross bookings rose 25% year over year to $53.7 billion, revenue grew 14% to $13.2 billion, and the company generated $2.3 billion of free cash flow.
Notably, Uber has also been turning autonomous vehicles into an opportunity by striking partnerships that put robotaxis on its network. One of them is a planned luxury robotaxi service using at least 35,000 vehicles from EV maker Lucid equipped with self-driving technology from Nuro.
Interestingly, the market hasn't rewarded any of this yet. Uber shares are down about 11% year to date as of this writing and trade at about 18 times earnings, arguably a modest price for a business growing this fast.
Should investors copy the concentration?
There's a lot to like about these three businesses. Each one is a leader in its market, each is generating growing streams of cash, and none carries the kind of sky-high valuation attached to many of 2026's most popular stocks.
The individual ideas, in other words, are worth studying. The portfolio structure is another matter. A fund where five positions make up 78% of assets can deliver exceptional returns when the calls are right, but a single mistake can do serious damage. Ackman is a professional investor with decades of experience, a research team, and, importantly, the temperament to sit through big drawdowns in individual names.
Personally, I'd treat a 13-F like this as an idea list rather than a blueprint, and most investors are probably best served doing the same. It's also worth remembering that these filings arrive with a lag. The holdings above are as of March 31, so Ackman's positioning may have shifted since.
Still, the filing leaves little doubt about where one of the market's most selective investors sees value right now: cash-generating market leaders at reasonable prices, held in size.
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Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Brookfield Corporation, and Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bill Ackman Runs a $14 Billion Fund on Just 11 Stocks. These Are His 3 Biggest Bets Right Now.

Fool.com contributor Parkev Tatevosian evaluates the latest developments for Lucid (NASDAQ: LCID) stock investors.
*Stock prices used were the afternoon prices of July 7, 2024. The video was published on July 9, 2024.
Should you invest $1,000 in Lucid Group right now?
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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lucid Group, Inc.

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