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Rivian Seen as the Stronger EV Bet as Lucid Confronts Losses and a Gravity Recall

Investors are weighing Rivian’s software-aided margin progress against Lucid’s costly scale-up in a soft EV market.

Overview

  • Analysts now favor Rivian over Lucid, pointing to better margin traction and fewer near-term disruptions.
  • Both stocks have collapsed from their 2021 highs, with Rivian down about 91.5% and Lucid down roughly 98.5%.
  • Rivian still posts large net losses, but software and services have pushed its overall gross margin positive even as vehicle margins remain negative.
  • Lucid increased 2025 output to 17,840 vehicles and lifted fourth-quarter deliveries to 5,345, though its scale remains small.
  • Lucid recalled more than 4,400 Gravity SUVs and paused shipments for 29 days, reported a $1.1 billion Q4 operating loss and $3.5 billion for 2025, and plans sub-$50,000 midsize models later this year in a U.S. market where EV sales fell 2% last year.