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Rivian vs Lucid. These two popular electric vehicle stocks draw plenty of attention from investors, but we're avoiding both like the plague. Why? Because neither company can sell vehicles for more than they cost to produce. Rivian's gross margin is trending in the right direction while Lucid's gross margin isn't. That means looking at cash and operating cash flow to calculate runway helps us understand how long they have before needing to raise capital again. Both companies have existing debt load in the billions, so perhaps they'll look to sell more shares, though both Lucid and Rivian have outstanding share numbers that have been increasing every quarter. When it comes to valuation, LCID stock is completely overvalued based on our simple valuation ratio. RIVN stock has a lower valuation than Tesla, but that's to be expected as the latter is one of the biggest success stories in the automotive world. Long story short, we're avoiding both Rivian and Lucid as these high-risk SPACs don't offer sufficient risk-vs-reward for getting electric vehicle exposure.

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