EV Bubble Watch on Rivian and Tesla

In 2025, the performance of electric vehicle stocks is mixed. Rivian Automotive (RIVN) is performing the best in a trading range of between $12 - $14. Tesla (TSLA) gave up half of its post-presidential election gain while Lucid Group (LCID) risks retreating to the $2.00 low.On Feb. 20, Rivian posted a positive gross margin in its fourth-quarter earnings report. The EV truck supplier cut costs by $31,000 per unit. Cost controls, average selling prices, and higher regulatory credit revenue helped results.Rivian’s tri-motor launch is a bullish catalyst. In addition, the R2 program launch is scheduled for the first half of 2026. Rivian ended Q4 with plenty of cash on hand at $7.7 billion. It received $2.3 billion in funding from Volkswagen Group (VWAGY).Rivian is the most attractive EV stock compared to Tesla or Lucid. Bears hold a commanding 8.31% short interest against Lucid stock. CEO Elon Musk’s leadership in DOGE – Department of Government Efficiency – is hurting Tesla sales. Musk’s political affiliation divides consumers. Those who do not support his politics are avoiding Tesla vehicles.Despite weaker sales ahead, firms like Nissan (NSANY) are seeking Tesla as a strategic investor. Before that, merger talks between Nissan and Honda (HMC) broke down. Given Nissan’s junk rating, Tesla shareholders should not support any involvement with the firm.