Investors who are bullish on the electric vehicle (EV) space might consider adding stocks such as Tesla (NASDAQ:TSLA) and Rivian (RIVN) to their portfolios. While Tesla is a market leader that has generated staggering returns since its IPO, Rivian commands a multi-billion-dollar valuation and is backed by Amazon (NASDAQ:AMZN).After a subdued start to 2021, electric vehicle (EV) stocks have been gaining momentum in the second half of this year. For example, shares of Tesla (TSLA) have gained close to 90% in the last six months while the recent IPO Rivian Automotive (RIVN) is up 45% since its IPO last week.
The long-term growth potential for EV stocks remains intact, given the worldwide shift towards the adoption of clean energy solutions. But similar to any nascent industry growing at an enviable pace, the EV industry is also bound to attract new and legacy automobile players in the upcoming decade.
Here, we analyze which EV stock between Tesla and Rivian is a better investment right now. Should you bet on a market leader like Tesla or will Rivian continue to surge higher in 2021 and beyond?