Rivian Automotive vs Tesla Which Performs Better?

Rivian Automotive and Tesla are two of the most prominent companies in the electric vehicle industry, each vying for a larger share of the market. Rivian, a rising star in the EV world, went public recently with high hopes for its innovative trucks and SUVs. On the other hand, Tesla, led by billionaire Elon Musk, has a proven track record of success and dominance in the EV market. Both companies have seen significant growth in their stock prices, but the competition between them continues to intensify as they strive to become the top player in the electric vehicle industry.

Rivian Automotive or Tesla?

When comparing Rivian Automotive and Tesla, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Rivian Automotive and Tesla.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Rivian Automotive has a dividend yield of -%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Rivian Automotive reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Rivian Automotive P/E ratio at -2.58 and Tesla's P/E ratio at 100.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Rivian Automotive P/B ratio is 2.42 while Tesla's P/B ratio is 18.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Rivian Automotive has seen a 5-year revenue growth of 0.00%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Rivian Automotive's ROE at -73.83% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.77 for Rivian Automotive and $390.85 for Tesla. Over the past year, Rivian Automotive's prices ranged from $8.26 to $24.61, with a yearly change of 198.00%. Tesla's prices fluctuated between $138.80 and $409.72, with a yearly change of 195.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.