Tesla, Inc. (TSLA)vs Rivian Automotive, Inc. (RIVN)

Quick verdict

The cleanest dividing line between these two electric-vehicle makers is profitability. Over the twelve months to June 2026 Tesla earned net income of $3.8bn on revenue of $103.6bn, while Rivian lost $3.2bn on revenue of $5.9bn. That single fact shapes everything else: Rivian has no meaningful earnings multiple to quote, so any P/E comparison would be arithmetic rather than analysis. Our factor scores land level at 3-3. Rivian takes the valuation factor on the asset- and sales-based measures available, Tesla takes quality outright, and growth, balance sheet, income and momentum are all too close to call. Tesla is tagged mature, Rivian high-growth. At the 4 September 2026 close Tesla's market capitalisation was $1,398.5bn against Rivian's $20.9bn — roughly sixty-seven times the size — so these are companies at entirely different stages of the same industry.

At-a-glance comparison

Business model and revenue mix

Both firms sit in the Auto Manufacturers industry within the US consumer cyclical sector, and both list on Nasdaq, but the businesses are not mirror images. Tesla makes electric vehicles and battery-storage products and layers on software, charging and energy services, which is why its revenue base reached $103.6bn in the twelve months to June 2026. Rivian builds electric pickup trucks, SUVs and commercial delivery vans, a narrower line-up that generated $5.9bn over the same period. The scale gap runs through every other figure on this page: Tesla's shareholders' equity stood at $86.9bn at 30 June 2026 against Rivian's $5.1bn, and Tesla had 3.95bn shares outstanding versus Rivian's 1.33bn. One is an established volume manufacturer with adjacent energy revenue; the other is still building out its vehicle programmes.

Valuation

Rivian takes this factor, though the comparison has to be made carefully. Because Rivian posted a loss over the twelve months to June 2026, no price-to-earnings ratio exists for it, and Tesla's 327.9x P/E therefore has nothing to be measured against. On the ratios both companies do support, Rivian is the cheaper share at the 4 September 2026 close: 3.55x sales and 4.07x book, against Tesla's 13.5x sales and 16.1x book. Tesla's EV/EBITDA of 141.9x and free-cash-flow yield of 0.41% are likewise unmatched on Rivian's side, since Rivian's free cash flow was negative. The honest reading is that Rivian is priced more modestly relative to its assets and turnover, but it is priced that way by a market pricing in losses rather than earnings.

Growth profile

Neither company wins on growth, and the reason is that their records are not directly comparable. Rivian's revenue compound annual growth rate of 48.1% from fiscal 2022 to fiscal 2025 is the higher figure by a wide margin, but it is measured from a very small starting base and no five-year figure is available. Tesla grew revenue at 5.19% a year over the same 2022-to-2025 window, with a 24.6% annual rate over the longer run from fiscal 2020 to fiscal 2025 — evidence of a step-change earlier in the decade that has since slowed sharply. Tesla's three-year earnings per share CAGR of -33.2% underlines that deceleration. Rivian has no EPS growth rate at all, since losses in both the base and latest years make such a calculation meaningless. Hence the tie.

Profitability and quality

Here Tesla wins without qualification. In the twelve months to June 2026 Tesla converted $103.6bn of revenue into $4.4bn of reported operating profit and $3.8bn of net income, giving margins of 4.22% and 3.67% respectively, on a gross margin of 18.9%. Rivian's gross margin was positive at 7.51%, which matters — it means vehicles are being built for less than they sell for — but operating costs swamped it: an operating margin of -60.1% and a net margin of -55.0% on $5.9bn of revenue. In cash terms the contrast is starker still. Tesla generated $5.8bn of free cash flow; Rivian consumed $3.5bn, equivalent to a free-cash-flow yield of -16.7% against its market value. Tesla's own margins are thin by historical standards, but thin and positive is a different category from deeply negative.

Balance-sheet risk

Financial position is the one place these two look closer than expected, and the factor is scored a tie. At 30 June 2026 Tesla held $15.2bn of cash against $9.1bn of total debt, a net cash position reflected in net debt to EBITDA of -0.63x, with interest cover of 13.1x and a current ratio of 1.94. Rivian held $3.6bn of cash against $4.4bn of debt and a slightly stronger current ratio of 2.10. Rivian's interest coverage figure has been withheld because it is not interpretable for a company with negative operating profit — a coverage ratio built on a loss conveys nothing. The important qualifier is cash burn: Rivian's $3.5bn of negative free cash flow over the trailing year has to be set against its $3.6bn cash pile, whereas Tesla is adding to its reserves.

Price performance and shareholder returns

Returns on capital divide as sharply as margins do. Tesla earned a return on equity of 4.61% and a return on invested capital of 4.01% over the twelve months to June 2026 — modest figures in absolute terms, and well below what a 16.1x price-to-book multiple would normally imply investors expect. Rivian's equivalents are negative: -57.7% return on equity and -46.7% return on invested capital, arithmetic consequences of a $3.2bn loss set against a $5.1bn equity base. Neither company returns cash to shareholders. Both pay no dividend, both show a payout ratio and buyback yield of zero, and the income factor is accordingly scored a tie at nil. For investors, all of the return here has to come from the share price rather than from distributions.

Which stock fits which investor

The split is unusually clean. Investors screening on quality should look to Tesla: it is the only one of the pair that earned a profit over the twelve months to June 2026, generated $5.8bn of free cash flow, and holds more cash than debt. Investors screening on value or on growth will find Rivian flagged instead — cheaper at 3.55x sales and 4.07x book, and growing revenue at 48.1% a year from fiscal 2022 to fiscal 2025, albeit from a low base and while losing money. Income investors have nothing to choose between them, since neither pays a dividend or buys back stock. Overall the factor scores finish 3-3, so this is genuinely too close to call: the answer depends entirely on whether proven profitability or a lower entry multiple on unproven earnings matters more to you.

• Value: RIVN
• Growth: RIVN
• Income: Too close to call
• Quality: TSLA

Frequently asked questions

Which of Tesla and Rivian is profitable?

Tesla. Over the twelve months to June 2026 it reported net income of $3.8bn and reported operating profit of $4.4bn on revenue of $103.6bn. Rivian recorded a net loss of $3,233m and an operating loss of $3,533m on revenue of $5.9bn over the same period.

Why is there no P/E ratio shown for Rivian?

A price-to-earnings ratio requires positive earnings. Rivian's trailing EPS was -$2.59 for the twelve months to June 2026, so no meaningful multiple exists. Tesla's P/E of 327.85x at the 4 September 2026 close therefore has no counterpart to be compared against.

Which stock is cheaper on the measures that do apply?

Rivian, on both available yardsticks. At the 4 September 2026 close it traded at 3.55x sales and 4.07x book value, against Tesla's 13.5x sales and 16.1x book. That is why the valuation factor is scored to Rivian.

How much cash is Rivian burning?

Free cash flow was -$3,489m over the twelve months to June 2026, a free-cash-flow yield of -16.7% against its $20.9bn market capitalisation. Cash on the balance sheet at 30 June 2026 was $3.6bn, with total debt of $4.4bn.

Does either company pay a dividend?

No. Both Tesla and Rivian show a dividend yield of 0% and a buyback yield of 0%, and dividends per share over the trailing twelve months were nil for each. The income factor is scored a tie for that reason.

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