About five years ago, there was a mini gold rush in the electric vehicle (EV) industry.
It was due to growing infrastructure support and a flood of public and private funding from investors hoping to get their hands on what might be the next Tesla
This gold rush ended poorly for many involved: from the more well-known Fisker Automotive, which was supposed to rival Tesla, to the lesser-known companies such as Canoo and Lordstown Motors. Even more capable companies, such as Lucid Group (NASDAQ: LCID), will almost certainly face more funding questions and capital raises within 12 to 18 months. Rivian Automotive (NASDAQ: RIVN), however, appears to be gaining real traction; here are three reasons to believe in it long-term.
Shareholder dilution While Lucid and Rivian are similar in many ways, one factor that has separated the two is shareholder dilution. Unlike Lucid, Rivian has been able to protect its shareholders from more severe shareholder dilution due to capital discipline and its strategic joint ventures, such as with Volkswagen. It also helps to have a little luck on your side.