Rivian and BYD are promising long-term plays on the EV market.
The electric vehicle (EV) market’s growth has slowed down in recent years, but most analysts still expect EVs to continue replacing gas-powered cars through the end of the decade.
According to Grand View Research, the global EV market could still expand at a 32.5% CAGR from 2025 to 2030. To capitalize on that secular trend, investors should consider buying a few shares of Rivian (RIVN 1.57%) and BYD (BYDDY 6.75%).
Image source: Rivian.
Rivian
Rivian produces high-end electric pickups, SUVs, and custom electric delivery vans. When it went public in 2021, it initially claimed it could produce 50,000 vehicles in 2022. However, it produced only 24,337 vehicles that year due to supply chain constraints.
Today’s Change
(-1.57%) $-0.23
Current Price
$14.52
Key Data Points
Market Cap
$18B
Day’s Range
$14.43 – $14.75
52wk Range
$10.36 – $22.69
Volume
14M
Avg Vol
46M
Gross Margin
-159.38%
Rivian more than doubled its production to 57,232 vehicles in 2023, but it produced only 49,476 vehicles in 2024 amid inflation, higher interest rates, lower EV subsidies, and intense competition. For 2025, it expects to deliver only 40,000 to 46,000 vehicles as it struggles to overcome macro and micro challenges. It also remains unprofitable.
However, analysts expect Rivian’s revenue to grow at a 31% CAGR from 2024 to 2027 as it narrows its losses. Its biggest near-term catalysts will be the launch of its more affordable R2 SUV, the opening of its Georgia plant, and its partnership with Volkswagen (VWAP.Y 0.41%). That’s a bright outlook for a stock that trades at less than three times this year’s sales.
BYD
BYD was originally a battery maker, but over the past two decades, it has evolved into China’s largest automaker. In 2022, it stopped producing gasoline-only vehicles to expand its lineup of plug-in hybrid EVs (PHEVs) and battery-powered EVs (BEVs). It differentiated itself from its competitors by developing its own lithium iron phosphate (LFP) batteries, which were safer, cheaper, and more power-efficient than traditional lithium-ion batteries.
Today’s Change
(-6.75%) $-0.83
Current Price
$11.54
Key Data Points
Market Cap
$137B
Day’s Range
$11.50 – $11.87
52wk Range
$11.50 – $20.05
Volume
4.9M
Avg Vol
1.7M
Gross Margin
23.15%
Dividend Yield
1.49%
From 2020 to 2024, BYD’s annual vehicle sales surged from 427,302 units to 4.27 million units, its revenue rose more than fivefold, and its net income grew nearly tenfold. The vertical integration of its supply chain, the unification of its fragmented production lines (under its e-Platform 3.0 architecture), and its international expansion fueled that explosive growth.
From 2024 to 2027, analysts expect BYD’s revenue and net income to grow at CAGRs of 13% and 16%, respectively. Its growth is slowing down as its business matures, but its stock still looks like a bargain at 16 times this year’s earnings.
