Rivian Vs Tesla: How The EV Rivals Stack Up In Gary Black's Investment Portfolio

The Future Fund Managing Partner Gary Black highlighted Rivian Automotive Inc.'s resilience Thursday, noting the electric vehicle maker's shares rose 3% after hours despite supply challenges, as investors focused on its maintained positive fourth-quarter gross margin forecast.

Electric vehicle manufacturers Tesla Inc. (NASDAQ:TSLA) and Rivian Automotive Inc (NASDAQ:RIVN) are charting different trajectories within Gary Black‘s Future Fund Active ETF (NYSE:FFND), highlighting the evolving dynamics of the EV market.

What Happened: The fund currently holds 954 shares of Tesla, valued at $275,257 and representing 4.20% of the portfolio, alongside a smaller 1.22% position in Rivian worth $79,738 through 8,212 shares.

Tesla has demonstrated strong performance, with its stock rising 2.90% to $296.91 on Thursday, marking a 33.63% gain over the past year. The company’s shares have surged 19.52% year-to-date, maintaining its position as the EV market leader.

In contrast, Rivian faces more challenging conditions. Despite rising 3.35% to $10.04 on the same day, the company’s stock has declined 52.44% year-to-date and 42.39% over the past year, according to data from Benzinga Pro.

However, Future Fund Managing Partner Black highlighted Rivian’s resilience, noting investor optimism following the company’s maintained positive fourth-quarter gross margin forecast despite supply challenges.

$RIVN +3% AH after reiterating that 4Q gross margins would still be positive, despite a part shortage that limited 3Q delivs. 3Q delivs, revs and Ebitda came in lighter than expected.

3Q:
– Delivs 10,018 vs 10,705 est
– Production 13,157 vs 12,624
– Rev $874M vs $980M exp
-…
— Gary Black (@garyblack00) November 7, 2024

Why It Matters: Rivian reaffirmed its 2024 production target of 47,000-49,000 vehicles, though it expects full-year EBITDA losses between $2.83 billion and $2.88 billion.

The company’s Chief Software Officer, Wassym Bensaid, emphasized Rivian’s distinct strategy of focusing on incremental safety and convenience improvements rather than pursuing full self-driving technology or robotaxis like its competitor Tesla.

CEO RJ Scaringe remains optimistic about Rivian’s growth prospects, particularly emphasizing the R2 platform’s potential as a key driver of future expansion, despite missing recent revenue and EPS estimates.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.