Tesla vs. Rivian: Which EV Maker's Stock Is the Better Buy?

In the world of electric vehicle (EV) stocks, Tesla (NASDAQ: TSLA) has long been the front-runner, while Rivian (NASDAQ: RIVN) is in the catch-up role. And while its vehicles have been award-winning, Elon Musk's company has become one of the most valuable in the world, with a market capitalization topping $1 trillion.

However, Rivian is taking some important steps. The EV maker recently signed a huge contract with Uber Technologies that would see it put up to 50,000 autonomous robotaxis on the road by 2031. Uber would also invest up to $1.25 billion in Rivian, dependent on specific performance milestones.

With a market cap of just $19 billion and a global market share of less than 1%, Rivian has an enormous opportunity. Is it a better buy than Tesla right now? The answer, as it turns out, depends entirely on your investment objectives.

Image source: Getty Images.

Rivian: The upstart contender

Rivian traces its roots back to 2009, initially to create a hybrid sports car. And although that project was eventually shelved, Rivian made its mark by developing electric trucks and SUVs, catering to off-road enthusiasts. Its products currently include versions of the R1S SUV that's designed for off-road use and the R1T pickup. It's now marketing new SUV models, the R2 and R3, although they aren't for sale yet.

Rivian also has an important partnership with Amazon, which invested in the company nearly a decade ago. Rivian has made more than 30,000 electric delivery vans for Amazon that the e-commerce giant uses for last-mile deliveries from distribution hubs to customers.

However, Rivian reported delivering 42,247 vehicles in 2025, down from 18% from the previous year. Rivian attributed the drop to several factors, including the expiration of federal EV tax credits and a weaker overall demand for EVs. However, the company has expressed optimism that it will generate more consumer interest from the release of its R2 model, which is expected to be priced around $45,000. Rivian has issued guidance for vehicle deliveries in 2026 to be in a range of 62,000 to 67,000.

Tesla: The reigning EV champion

Rivan shareholders may be cheering the idea of 67,000 deliveries in a calendar year, but Tesla exceeds that number every month. The automaker delivered 1.63 million vehicles in 2025 -- down from 1.78 million a year before.

Like Rivian, Tesla was hurt by the loss of the federal tax credit at the end of the third quarter. But there's also the company's dwindling profit margin.

Source: Tesla.

Tesla is facing more competition, which has forced it to cut its prices. Fortunately for the company, revenue from its energy generation and storage segment has increased from $6.03 billion in 2023 to $12.77 billion in 2025. Otherwise, those margins would look even worse.

But Musk doesn't seem to be losing sleep with worry. In fact, he's repositioning Tesla for the next goal of autonomous robots. The CEO announced that Tesla was discontinuing its high-priced Model S sedan and Model X SUV, instead turning over factory space for the production of the company's Optimus robots.

And for good reason. Analysts at RBC Capital Markets estimate that the market for humanoid robots by 2050 will be $9 trillion, and Tesla's Optimus can help it capture 5% of that, or $450 billion. Dan Ives of Wedbush Securities says Optimus "will be the gamechanger for Tesla."

The verdict

I'm not going to predict the demise of EVs, although both Tesla and Rivian saw a decline in deliveries in 2025. The rising price of gasoline will make EVs more popular, particularly if vehicle prices continue to drop.

If you want to invest in a pure-play EV stock, Rivian is your pick. The Uber partnership gives Rivan greater visibility and capital to continue developing vehicles that can compete, and even beat, Tesla in the marketplace.

But Tesla is becoming much more than just a vehicle company. Positioned at the forefront of robotics and with factory space and infrastructure already in place, Tesla's opportunity is even larger and more appealing, making it a compelling play in its own right.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.