Rivian Vs Tesla Stock

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Rivian Vs Tesla Stock

Rivian Vs. Tesla: Which Stock To Buy?

Rivian and Tesla are two big names in the EV industry, but the company sizes are very different. The market cap of Rivian is only $20 billion, while Tesla has a market cap of almost $1.5 trillion.

So, for anyone who wants to invest in EV stocks, a common question is which one to buy? To answer this, we must take a closer look at both of these growth stocks.

Rivian

If we start with Rivian, then the biggest news for investors is that the company has managed to get positive gross profit for the first full year! In Q4, the gross margin of Rivian was $120 million, which means a gross margin of 9%.

However, the Q4 data also showed that revenue is down by 45% y/y, which is not good news. But the services and software segment of Rivian grew by 109% y/y during the same period!

According to Rivian's management guidance, they will deliver 62,000 - 67,000 cars. So, if they can manage this, it would mean a growth of 53% y/y.

Tesla

There's no doubt that Tesla's automotive business is going through a rough patch. In Q4 2025, Tesla delivered only 418227 vehicles, which reveals a decline of 16% y/y.

On a full-year basis, the total deliveries by Tesla were only 1.63 million, which is a decline of roughly 9%. But what makes Tesla different from Rivian is that it has a profitable ecosystem

So, even if Tesla's revenue declines in the EV space, it still has many other ventures to make money from! For example, the energy storage and generation segment of Tesla showed a 29% y/y growth.

Tesla Is The Better Stock

On the surface, the valuations of both Tesla and Rivian look overstretched. So, if you really have to buy an expensive stock, then a better option would be Tesla, as it has a long history and a more diversified business model.

Rivian has made progress in terms of profitability, but its net losses are still massive. Also, Rivian is still new as compared to Tesla, and its sheer size is also not that big!

In the long run, the Robotaxi and the energy business can prove to be two big sources of revenue for Tesla. So, for those who want to play it a little safe, then Tesla is the better growth stock.

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