Which EV Startups are Fading in Relevance?

Investors in electric vehicle (EV) startup companies have recently become more discerning.  They want to see signs of progress in a company before committing capital to a particular stock.  Shares of Rivian Automotive (RIVN) and Lucid Group (LCID) are beating the gains in the S&P 500 Index this year, while one-hyped EV startups like Faraday Future Intelligent Electric (FFIE), Workhorse Group (WKHS), Nikola (NKLA), and Canoo (GOEV) have seen double-digit declines.

Rivian Automotive rallied to a 7-month high Monday on signs the company has turned the corner after it reported it produced 13,992 vehicles in Q2, above the consensus of 12,562.  Rivian also said it had started shipping hundreds of the electric vans it makes for Amazon.com, its largest customer, to Europe for the first shipments outside of the U.S.  However, the company has a long way to go to challenge the EV leaders.  Tesla (TSLA) has built 34 vehicles for every one vehicle that Rivian assembled in Q2.  Rivian CEO Scaringe said the company has sorted through supply-chain issues and will benefit from the U.S. Inflation Reduction Act.