Shares of Tesla Inc. rose 4% following its first-quarter results, while Rivian Automotive stock faced pressure due to news regarding the pricing of its new R2 model. Despite a weak start to 2026 for both automakers, investors have begun reassessing their positions amid Tesla’s margin recovery and Rivian’s ongoing lack of profitability.

Tesla shares traded higher on the back of a 16% revenue increase to $22.4 billion and a significant improvement in gross margin to 21.1%. Meanwhile, Rivian shares fell more than 8% after the company announced the starting price for its long-awaited R2 SUV at nearly $58,000, which is substantially higher than the previously promised $45,000.

Tesla’s current stock price reflects high expectations for its investments in AI and Robotaxis, on which the company plans to spend over $25 billion this year. Tesla’s market valuation remains high, exceeding 190 times its projected earnings, while Rivian continues to struggle with negative EBITDA, which could reach up to $2.1 billion for the full year.

Tesla confirmed its status as a more stable player, boasting $44.7 billion in liquidity, allowing it to invest aggressively in autonomous driving and the Optimus robot. Rivian, by contrast, has only cleared part of the hurdle toward profitability: although its loss per share narrowed to $0.33, the company is still burning cash, and a mass-market affordable version of its EV is not expected until late 2027.