I Have $30K to Invest, But I’m Stuck Between Tesla and Rivian—Which One Wins?

The electric vehicle industry is growing at a rapid pace. The U.S. saw a 7% jump in EV sales last year and despite soaring competition, two EV players have been the talk of the town.

Tesla (NASDAQ: TSLA) is known as an EV maker that brought the latest technology to town.  Rivian (NASDAQ: RIVN) has also caught the attention of investors with its commercial lineup, including the R series of trucks and SUVs, as well as its Fleet vans.. Investors are trying to figure out the best EV maker in the market and if you have $30K you want to put in the EV industry, I’ll help you make the right choice. Here’s a case for each company.

Key points in this article: 

• The EV sector might be down today but it is not out. 
• These two EV companies have catalysts working for them and 2025 could be a big year. 
• While these EV stocks could be a solid long-term buy, grab our free “The Next NVIDIA” report to discover a software stock with 10X potential. 

Tesla

A leader in EVs, Tesla has remained at the top of the global EV market despite rising competition. It holds 18% of the BEV market and is capitalizing on its first-mover advantage. Its early investment in the industry is paying off and has allowed the company to handle market volatility.

Despite losing share in the Chinese and U.S. markets, the company continues to maintain its leadership position. It hasn’t had a good 2024 and struggled with low demand, which led to price cuts and impacted the profitability of the business. 

The company has garnered attention for the Robotaxi, which is going to be a part of its ride-hailing service. The sector is heating up and Tesla could hold a large share of the market over the next five years. Teslas’ fourth quarter results showed only a 2% rise in sales to $25.7 billion despite reducing the average selling prices of its top models. Its automotive revenue was down 8%. For the first time in the company’s history, it reported a dip in vehicle deliveries.

Despite the rally, the stock is down from the 52-week high of $488. ARK Invest has a price target of $2,600 per share for the company in 2029. This means steady revenue growth in the coming years assuming that its robotaxi business is a huge hit by then. The demand for ride-sharing services could rise in the next five years but this price target seems too optimistic in the current situation. 

Rivian

Rivian has made impressive moves in the EV industry and attracted investor attention. Amazon (NASDAQ:AMZN) and Volkswagen have invested in the company, giving it a solid push. It will use Volkswagen’s in-vehicle technology and electric architecture for its vehicles. Through Volkswagen, the company received up to $5.8 billion in equity, loans, and investment. 

It has also received a loan from the Department of Energy for its second plant in Georgia. In its deal with Amazon, the company has to deliver 100,000 electric delivery vans (EDV) to the company by 2030. Earlier this was an exclusive deal but later, the company was free to sell its EDVs to other companies. In 2026, the company aims to launch a smaller SUV and a crossover vehicle, R3.

For 2024, the company reported production of 49,476 vehicles and delivered 51,579 vehicles. It reported a loss of $1.1 billion in the third quarter with a revenue of $874 million. It could take years for Rivian to achieve a profit. Rivian is still losing money on every vehicle it sells. The company had a target to deliver 50,500 to 52,000 vehicles in 2024 and it delivered 37,396 vehicles in the first three quarters. It will have to report deliveries of over 12,000 vehicles to hit the lower end of the guidance. Rivian is set to report on February 20 and the market is hoping to see a positive gross profit.

The verdict

If you are keen on investing in the EV market and want to bet $30K, I’d recommend choosing Tesla for multiple reasons. The company is already an established player and is in a mature stage. It is profitable, way ahead of its competitors, and has a strong lineup of cars. On the other hand, Rivian is just getting started and it might not be fair to compare it to Tesla.

You may have to pay a premium for Tesla but you will be able to see gains in the short-term. Rivian is more of a speculative investment and it will be interesting to see where the company goes from there. 2025 will be an interesting year for both companies but I believe Tesla is in a strong position to benefit from the transition to EVs. 

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