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A long-running Axios poll indicates Tesla's brand reputation has tarnished.
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Rivian could benefit, but management's recent guidance update is discouraging.
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Hope isn't lost, but a lot is riding on Rivian's upcoming economy model.
Tesla was a driving force in creating the electric vehicle market and became one of the most popular brands across any industry for its technology and focus on sustainable energy. Tesla's success helped make CEO Elon Musk one of the world's wealthiest and most famous people.
However, a recent poll indicates that Elon Musk's decision to wade into a divisive political landscape has tarnished Tesla's brand.
It could open the door for competitors like Rivian Automotive (NASDAQ: RIVN), which hopes to establish itself but has struggled to grow its business. Is Tesla's potential slip the opportunity Rivian needs, and should investors buy the stock?
Here is what you need to know about investing in Rivian today.
Elon Musk's ambition has helped him become a legendary entrepreneur. He has founded, co-founded, or invested in a list of companies, including Tesla and SpaceX, and amassed a $400 billion-plus net worth that he leveraged to buy social media platform Twitter, now known as X.
Musk has waded further into America's political scene in recent years. The problem with politics isn't necessarily one's views or opinions, but politics' divisive nature. In other words, no matter how you feel, someone will disagree.
Axios conducts an annual poll that tracks the reputations of numerous companies and brands among American consumers. Tesla once had a sterling reputation, but that has changed. The company ranked eighth in the survey in 2021 but fell to 63rd last year and 95th this year.
It's not an absolute indictment; the poll surveyed only about 16,500 U.S. adults. Still, SpaceX has also slipped, indicating that political blowback has likely contributed to Tesla's slowing vehicle sales.
The automotive industry is competitive, and it costs billions of dollars to build and operate the factories and equipment capable of producing large quantities of electric vehicles. Even Tesla nearly bankrupted itself trying to grow production of its Model 3 from 2017 to 2019.
Rivian has continued to raise money as it works through its growing pains, but its lack of growth in recent years hasn't been a good sign. The company delivered 50,122 vehicles in 2023, but that only grew to 51,579 last year.
