2 months ago
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Daniel Miller, The Motley Fool
Wed, July 22, 2026 astatine 9:05 AM CDT 6 min read
About 5 years ago, determination was a mini golden unreserved successful the electrical conveyance (EV) industry. It was owed to increasing infrastructure enactment and a flood of nationalist and backstage backing from investors hoping to get their hands connected what mightiness beryllium the adjacent Tesla.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Rivian Automotive (NASDAQ: RIVN), however, appears to beryllium gaining existent traction; present are 3 reasons to judge successful it long-term.
Shareholder dilution
While Lucid and Rivian are akin successful galore ways, 1 origin that has separated the 2 is shareholder dilution. Unlike Lucid, Rivian has been capable to support its shareholders from much terrible shareholder dilution owed to superior subject and its strategical associated ventures, specified arsenic with Volkswagen.
It besides helps to person a small luck connected your side. Rivian executed 1 of the largest archetypal nationalist offerings successful U.S. past by raising astir $13.7 cardinal successful gross proceeds, which gave the young EV shaper a agelong superior runway. In contrast, Lucid entered the nationalist markets done a SPAC merger that had a lighter currency equilibrium to assistance pave the mode forward.
Another illustration of however the 2 disagree is that Lucid has relied heavy connected Saudi Arabia's Public Investment Fund (PIF), which present owns a controlling involvement successful the company. While Lucid has repeatedly issued caller equity that dilutes existing shareholders, Rivian mostly took a antithetic way by leveraging its interior bundle and electrical stack to ink a $5.8 cardinal woody with Volkswagen that has helped make non-dilutive licensing and convertible loans.
You tin spot successful the graph supra that Lucid was expanding its shares outstanding overmuch more, until past twelvemonth erstwhile the EV shaper executed a 1-for-10 reverse banal split, which reduced its stock number to proportionately summation its stock price, enabling it to stay listed connected the Nasdaq. That's not a large concern to beryllium in. Make nary mistake, erstwhile considering either of these EV stocks long-term, Rivian is surely much enticing, adjacent considering lone its lesser shareholder dilution.
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