Exploring two Potent, Lucrative Electric Vehicle Shares to Invest in by 2025
Exploring two Potent, Lucrative Electric Vehicle Shares to Invest in by 2025
If you're an investor with a penchant for risk, and seeking substantial long-term investments, QuantumScape (QS -3.09%) and Rivian Automotive (RIVN -2.78%) ought to be stocks of interest for you. Both have the potential to either significantly enrich you or burn a hole in your wallet. Here are a couple reasons why they could be strong buys in 2025.
QuantumScape: The future in the making
QuantumScape has been stealthily working on innovative solid-state lithium-metal batteries. If successful, they could significantly elevate the current benchmark due to improved energy density, quicker charging times, and enhanced safety.
Don't underestimate the gravity of this: If QuantumScape's solid-state batteries reach commercial production, they could transform the battery industry. The company is meticulously progressing from development to commercialization, providing ample rewards for patient investors.
In late December, QuantumScape announced that the equipment for Cobra – the second phase of sample production – had been delivered, installed, and released for initial processing. Essentially, this signifies the company is near to commence high-volume sample production in 2025. It's just another milestone for the company in its journey to commercialization, enabling mass production and revenue generation.
Speaking of commercialization, 2024 saw a watershed moment for the company with its groundbreaking agreement with Volkswagen Group's battery company, PowerCo. Under the non-exclusive license, PowerCo can manufacture up to 40 gigawatt-hours (GWh) per year using QuantumScape's technology, with the possibility of doubling it. This is enough to equip one million vehicles annually.
The beauty of this agreement lies in its non-exclusivity, a clause that young start-ups often struggle to negotiate. This enables more partnerships and deals in the future.
Currently, QuantumScape is gearing up to dispatch its second phase of sample production to potential consumers. It's making real strides – and adhering to schedule – toward commercial production. The future's unwritten, but things look promising based on testing results, and if management continues to execute, long-term investors could reap substantial returns. If you're intrigued by QuantumScape, this is a must-watch.
Rivian: Carving out its unique path
Rivian may not turn out to be Tesla's successor, but that doesn't limit its potency to carve out a valuable niche in the industry.
Its R1T electric pickup truck and R1S electric SUV have garnered numerous awards and toppled the industry in customer satisfaction, according to J.D. Power and Consumer Reports. The vehicles have even upgraded to a second-generation version.
Beyond its current SUV and truck lineup, the company has some promising products in the pipeline: the R2, R3, and R3X. All are expected to cost $50,000 or less, greatly expanding the company's customer base and market reach.
Thanks to cost-cutting and advancements in software and hardware, the vehicles will become more profitable per unit. In fact, thanks to improvements made on the first-generation vehicles, Rivian anticipates being gross-profit positive during the fourth quarter, a significant step towards proving the company's profitability roadmap, which is still several years away.
Rivian has also forged important partnerships and deals. It has joined forces with Volkswagen Group for a total deal of up to $5.8 billion, combining its software and electronic architectures with Volkswagen's scale and financial resources. The two aim to develop the next generation of software-defined vehicles.
In addition to its Volkswagen deal, Rivian also secured a conditional commitment for up to $6.6 billion in loans from the U.S. Department of Energy to aid in the construction of its Georgia factory.
Rivian is quietly setting itself up for a strong 2026 and beyond.
Buy in 2025?
Both of these stocks are high-risk, high-reward propositions. They could end up worthless if they fail to meet their individual expectations. On the flip side, if QuantumScape finalizes its technology and commercializes production, it could revolutionize the EV battery industry. And Rivian, while not the next Tesla, could end up a lucrative player in the pure-play EV space.
These are highly speculative stocks and should be limited to a small position in any portfolio. However, 2025 could present an opportunity to buy both. QuantumScape continues to move towards commercialization, and 2025 could mark the next phase in completing its sample testing. And 2025 could be a quiet year for Rivian, maybe even as it prepares to launch its pipeline of vehicles in 2026.
If you're adventurous and have a taste for risk, keep these two stocks on your radar in 2025.
- If you're interested in investing in companies with significant growth potential in the electric vehicle (EV) and battery industries, both QuantumScape and Rivian might be worth considering.
- In 2025, QuantumScape anticipates commencing high-volume sample production of its innovative solid-state lithium-metal batteries, which could revolutionize the EV battery industry if successful. This could be an opportune time for investors to consider investing in QuantumScape's stocks.