Lucid vs. Rivian: Which EV Stock Holds the Upper Hand After Q2?

Lucid Group LCID and Rivian Automotive RIVN are two of California’s most prominent pure-play electric vehicle (EV) makers. While e-mobility remains the future of transportation, headwinds like high costs, tariffs and shifting policies under the Trump administration—especially with EV tax credits set to expire—could temper industry growth expectations. Against this backdrop, let's delve into the growth drivers and challenges for both LCID and RIVN to see which company looks better positioned after the second-quarter 2025 results.

The Case for LCID

Lucid’s lineup today includes the Air sedans and the Gravity SUVs. The company delivered 3,309 vehicles in the second quarter of 2025, up 38% year over year and its sixth straight quarter of record deliveries. With Gravity production ramping up, management expects the momentum to continue. CEO Peter Rawlinson has called Gravity a “game-changer,” noting that its market potential is six times larger than Air’s.

Financially, Lucid showed some progress. Revenues in the last reported quarter rose to $259.4 million from $201 million a year ago. Total costs and expenses increased 7.5% year over year, but the adjusted net loss narrowed to 24 cents per share from 29 cents. While profitability is still a challenge, the direction is encouraging.

Lucid Group, Inc. Price, Consensus and EPS Surprise

Lucid Group, Inc. price-consensus-eps-surprise-chart | Lucid Group, Inc. Quote

The company is also betting on future growth drivers. Its midsize EV platform—expected to be launched in 2026—will target more affordable price points compared to the premium Air and Gravity. This should expand its customer base, improve manufacturing efficiency and lower unit costs while maintaining performance standards.

Lucid is working hard to secure its supply chain as well. It struck deals to source graphite domestically with Graphite One starting in 2028, nickel from Alaska Energy Metals to enhance range and battery life, and manganese from Electric Metals to support long-range EVs. A partnership with RecycLiCo adds battery recycling and critical material sourcing capabilities. These moves aim to reduce reliance on imports and offset tariff risks.

Another growth lever is autonomous mobility. In July, Lucid signed a major deal with Uber to supply 20,000 vehicles over six years equipped with Nuro’s self-driving tech. Uber also invested $300 million, providing Lucid with both capital and a ready sales channel. On the software side, over-the-air updates added new driver-assist features last month.

Additionally, with the backing of Saudi Arabia’s Public Investment Fund, which has invested around $9 billion since 2018, Lucid has the financial muscle to keep its ambitions on track. The company ended the second quarter with approximately $4.86 billion in total liquidity, including $1.8 billion in cash and cash equivalents. 

Having said that, near-term headwinds persist. The company lowered its production forecast for 2025 from 20,000 units to a range of 18,000-20,000 units amid tariff woes. Also, despite cost-cutting and supply chain adjustments, the company still expects tariff-related headwinds to hurt full-year 2025 profit margins. 

The Case for RIVN

Rivian’s lineup includes the R1T electric pickup and the R1S SUV. In the last reported quarter, it delivered 10,661 vehicles, better than Lucid’s numbers, but down from 13,790 a year earlier. This marked the second straight quarter of year-over-year declines. That said, Rivian expects the third quarter to be its strongest delivery quarter of the year across both consumer and commercial segments.

Financially, the picture is mixed. The company reported a loss of 80 cents per share in the second quarter of 2025, narrower than last year’s $1.21 loss. Revenues rose 12.5% year over year to $1.3 billion, helped by stronger software and service sales. However, supply chain pressure and tariffs dragged margins back into negative territory, erasing two quarters of positive gross profit.

Rivian Automotive, Inc. Price, Consensus and EPS Surprise

Rivian Automotive, Inc. price-consensus-eps-surprise-chart | Rivian Automotive, Inc. Quote

Rivian’s long-term story hinges on two major growth drivers. The first is its strategic partnership with Volkswagen. The German automaker plans to invest up to $5.8 billion in Rivian and its joint venture by 2027. So far, $3.3 billion has already been committed. Rivian also expects up to $2.5 billion in additional capital from the JV, including $1 billion in equity in 2026 after successful winter testing, a $1 billion loan later that year with repayments starting from 2029 and $460 million in equity by early 2028 or the start of production. This capital infusion strengthens Rivian’s balance sheet while also advancing its next-generation electrical architecture and software platform.

The second growth driver is the upcoming R2 model, a midsize SUV slated for launch in early 2026 at a starting price of around $45,000. Unlike the premium R1 series, R2 is aimed at more budget-conscious consumers and is expected to deliver significant cost savings—nearly 50% lower material costs compared to R1, along with halved production expenses. Management believes R2 will accelerate Rivian’s path to profitability by boosting production volumes at its Illinois plant and lowering fixed costs per unit.

Still, near-term challenges remain. Rivian now guides 2025 deliveries of 40,000-46,000, down from 51,579 units in 2024. It also widened its projected EBITDA loss to $2-$2.25 billion from $1.7-$1.9 billion guided earlier.

Conclusion

Lucid and Rivian are both working to carve out space in a highly competitive EV market. Rivian is leaning heavily on future promises—the Volkswagen partnership and the R2 launch—to change its fortunes. While these could be transformative, they come with significant execution risks, particularly at a time when deliveries are slowing and losses are expected to widen.

Lucid, meanwhile, is showing steadier progress. It already has momentum with Gravity, a clearer path to broaden its lineup, and stronger strategic positioning through supply chain partnerships and mobility collaborations. Add in the deep financial backing it enjoys, and Lucid appears better equipped to withstand near-term challenges while continuing to scale.

We think Lucid looks like a better choice post-second quarter earnings. LCID carries a Zacks Rank #3 (Hold) now, while RIVN has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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