Better Stock: Lucid vs. Rivian (Hint: It's All About Shareholder Dilution)
Shareholder dilution is one of the major differences between Rivian and Lucid, and investors should note how it looks going forward.
Overview
The U.S. transition to electric vehicles (EVs) hasn't been a smooth ride thus far. Following the end of the federal $7,500 EV tax credit and a weakening of fuel economy regulations, young EV makers have had a tough time generating as much demand as anticipated only a few years ago.
That said, the transition will go on, and will eventually accelerate, and that leaves investors who want to buy into this EV future a few options.
Details
On the riskier end of the scale, investors might be comparing Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID). Here's one major factor to remember: shareholder dilution.
Source
Originally published at www.fool.com.