Rivian Set to Disrupt EV Market with Affordable Models in 2023
Rivian Automotive is set to shake up the electric vehicle (EV) market with plans to launch three new models under $50,000 in early 2023. Meanwhile, Tesla and Lucid remain years away from offering affordable alternatives.
Rivian's aggressive expansion comes as Tesla and Lucid focus on developing robotaxi services. Tesla has already launched its robotaxi service in Austin, Texas, while Lucid has partnered with Uber Technologies for a similar venture. However, industry experts warn that scaling up such services will take years due to technological limitations and regulatory hurdles.
Investors are bullish on Rivian's prospects, with the company expected to be a top growth stock in 2023. Its discounted valuation, trading at 3.6 times sales, makes it an attractive investment option. In contrast, Tesla and Lucid stocks are priced at premiums, with Tesla at 15.4 times sales and Lucid at 7.6 times sales, despite falling revenue.
Looking ahead to 2025, US technology stocks like NVIDIA, Meta Platforms, Microsoft, Apple, and Amazon are tipped for long-term growth, particularly in the digitalization and AI sectors. The potential of robotaxis, a $5 trillion to $10 trillion global opportunity, continues to excite investors. As Rivian prepares to launch affordable models, the EV market braces for intense competition.
