Better Stock: Lucid vs. Rivian (Hint: It's All About Shareholder Dilution)

The article compares Lucid Group and Rivian through one key lens for investors: shareholder dilution. It argues that the EV market has become harder since the end of the U.S. $7,500 EV tax credit and weaker fuel economy rules, leaving young automakers reliant on capital raises. Rivian went public in 2021 with a traditional IPO, selling 153 million shares at $78 each and raising nearly $14 billion, giving it a cash cushion. Lucid, which went public via a SPAC merger, received about $4.4 billion and reported $3 billion in total liquidity at the end of Q2 2026, with $732 million in cash equivalents. While management expects liquidity into 2027, analysts anticipate additional capital raises could be dilutive. The article notes Lucid targets $1.4 billion in cash-flow improvements and has Saudi Arabia’s Public Investment Fund as a major shareholder, while Rivian reported $5.3 billion cash and cash equivalents and about $5.8 billion total liquidity including its credit facility.