Lucid vs. Rivian: Which EV Challenger Is the Better Stock to Buy Now?

Wed, Aug 13, 2025, 12:15 PM 6 min read

As traditional automakers continue to transition to electric vehicles (EVs), pure-play EV challengers such as Lucid Group (LCID) and Rivian Automotive (RIVN) compete for market share in an industry that remains highly volatile.

Both companies have compelling technology, ambitious expansion plans, and clearly defined target markets, but they also face similar profitability challenges and policy headwinds. Both have just released their second-quarter results, which show both promise and pressure. Let’s find out which is the better buy right now.

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Lucid reported $259 million in Q2 revenue, a 29% increase year over year, and the sixth consecutive quarter of record deliveries (3,309 units). Production increased to 3,863 vehicles, up 38% from the same period last year. Lucid expects to produce between 18,000 and 20,000 vehicles this year. However, its gross margin was negative 105%, weighed down by a $54 million tariff impact. Lucid reported an adjusted net loss of $0.24 per share.

Lucid stock is down 25% year-to-date, compared to the broader market gain of 9.7%. Lucid announced plans for a 1-for-10 reverse stock split, which is expected in early September pending shareholder approval. Management claims it is intended to attract long-term institutional investors.

Its flagship Air sedan continues to receive praise for its market-leading range, high efficiency, and ultra-fast charging abilities. These features have given Lucid a technological advantage in the luxury EV segment. Additionally, the Gravity SUV has the potential to significantly expand Lucid’s addressable market and increase sales volumes.

The most notable move this quarter was Lucid’s recently announced partnership with Uber (UBER) in Europe to develop a next-generation premium robotaxi based on the Lucid Gravity platform. The agreement includes a $300 million Uber investment in Lucid (pending regulatory approval) and the deployment of 20,000 Lucid Gravity robotaxis over six years, with the first vehicles expected to launch in late 2026. For investors, this represents a potentially massive entry point into the multitrillion-dollar robotaxi market, as well as a third-party validation of Lucid’s engineering capabilities.