From a practical point of view, both Tesla(NASDAQ: TSLA ) And Rivian(NASDAQ: RIVN ) In the year In 2024, he had an interesting year. However, while Tesla’s stock is higher, however Rivian The shares ended the year at an all-time low, down about 43 percent. Part of Tesla’s stock success last year may have been due to its late run following Donald Trump’s election win, as Tesla CEO Elon Musk has been a big supporter and adviser to him.
But as the new year approaches, let’s take a look at which stocks could do better in 2025.
In the year As their stocks headed in different directions in 2024, so did their vehicle shipments. Rivian in 2010 It delivered 51,579 vehicles in 2024, up 3 percent from 2023, while Tesla delivered about 1.79 million vehicles, down from 1.81 million deliveries a year ago.
Rivian’s supply growth came despite several issues limiting production during the year. At the beginning of the year, the manufacturing plant was closed to carry out renovations, and at the end of the year, there was a shortage of spare parts. Tesla, meanwhile, saw its first annual delivery drop as the company faced strong competition and sales pressures in China and Europe.
However, investors brushed aside Tesla’s strong 2024 outlook. Many don’t see the company’s biggest selling opportunity. Electric Vehicles (EVs) But the aspirations of an autonomous driving robotaxi. The company had a big Cyber Cab event last year, which is a two-seater car with no steering wheel or pedals. The vehicle will be priced under $30,000 and plans to start production of the vehicles before 2027. However, the company did not disclose details about the technology used, driving and safety features of the vehicles.
Tesla has not been able to successfully develop a fully autonomous driving car, and the vehicles have been subjected to several high-profile accidents and investigations using controlled full self-driving (FSD) technology. However, Musk has pushed for the government to eliminate the National Highway Traffic Safety Administration’s (NHTSA) auto accident reporting requirements, which the Trump administration supports. Such a move would make it easier to approve fully autonomous driving technology, paving the way for the robot axis.
It is currently only owned by Waymo. AlphabetIt offers paid robotaxi rides in the US, but the technology is more expensive than Tesla’s due to the use of lidar. However, Tesla purchased lidar sensors last year, so whether or not they will incorporate the technology to improve performance remains to be seen. However, if the company can develop a low-cost autonomous robotaxis, it has a huge opportunity ahead of it.
Rivian’s ambitions are much simpler than Tesla’s. First, the company is trying to be Gross Margin –Positive, it has been selling the vehicles for less than it costs to make them. The company has upgraded the equipment in the factory to improve line costs, as well as reduce the cost of materials that go into the vehicles. Its biggest achievement was the switch to a new Zonal architecture, which significantly reduced the number of electronic control units (ECUs) and wiring in the vehicles, reducing costs.
Zone Architecture was a big reason behind the big investment and partnership the company made. VolkswagenIt gets the technology for its own EVs. In return, Rivian is receiving high cash payments, assuming certain milestones are met, which will help ramp up production of the new R2 SUV. Rivian is looking at the cheaper R2, which is expected to sell around $45,000, to give the SUV more mass appeal. The new SUV is expected to go into production in the first half of 2026.
Image source: Getty Images
Both Tesla and Rivian in 2010 They have potential incentives in 2025. Any moves and announcements about autonomous driving and robotaxis should be good news for Tesla stock. While sales may continue overseas, I think this could be the stock’s biggest driver.
Rivian stock, meanwhile, should improve if it can reach positive gross margins and gradually improve throughout the year. As it spins out models built with old technology and ramps up production as current shortages are addressed, that seems like a realistic goal.
Investing between the two, I’d go with Rivian as the more speculative play. In the year The inventory is hit by 2024, and it should be able to make progress on its gross margin goals as well as increase shipments. Tesla stock, on the other hand, had a big run through 2024, so it may not have as much upside on any positive news.
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Susan Frey, an executive at Alphabet, is a member of the Motley Fool’s board of directors. Jeffrey Seiler It has a place in the alphabet. The Motley Fool has positions and recommends Alphabet and Tesla. The Motley Fool recommends Volkswagen AG. The Motley Fool has Disclosure Policy.
