Rivian, Lucid Gear Up To Kill The Tesla Model Y — But How Are Their First EVs Holding Up?

• Lucid and Rivian followed Tesla’s playbook and started sales with a more premium model, but are now seeking to enter the mass market segment.
• While Rivian is looking to start production of its R2 SUV, Lucid is slated to start making its Cosmos SUV before the end of the year. 
• However, both their first models are fast eroding in popularity, as reflected by Q1 sales numbers.

As EV makers Rivian Automotive (RIVN) and Lucid Motors (LCID) gear up to launch new and cheaper vehicle models, their first EV model is fast eroding in popularity, data shows.

Rivian is now gearing up to start production of its R2 midsize SUV at its plant in Normal, Illinois. The R2, whose entry level variant is expected to start at around $45,000, is expected to catapult Rivian into the mass market EV segment. Deliveries of the first R2 vehicles are expected to start around June 2026.

Lucid, meanwhile, is also looking to launch cheaper vehicles based on its midsize platform. The first model, named Cosmos, is expected to be priced below $50,000. The company plans to start production of the vehicle by the end of 2026.

Mass Market Entry Strategy

Lucid and Rivian followed EV giant Tesla Inc.’s (TSLA) playbook. Both companies started sales with a more premium model and are now seeking to enter the mass market segment with a new midsize SUV that can rival the popularity of Tesla’s mass market bestselling Model Y SUV, which has a current starting price of $39,990. Tesla started delivering the Model Y in 2020 after debuting it in 2019.

While Rivian’s first model was the R1T truck, with a current starting price of about $72,990, Lucid’s first EV was the Air sedan with a sticker price of $70,900.

According to data from Cox Automotive, Rivian sold only 1,658 of its R1T trucks in the first quarter in the U.S., marking a decline of 4% year-over-year. The truck accounted for just about 16% of the company’s overall sales in the region in the quarter, with the R1S SUV accounting for a lion’s share of the sales.

Meanwhile, Lucid Air sales fell a deep 62.7% to 920 units, accounting for 36% of the company’s overall U.S. sales now dominated by its Gravity SUV.

Tesla’s First Car

The trend has not bucked with big fish Tesla either. Tesla first entered the EV market with its Roadster vehicle. However, the company produced only a few thousand units of the vehicle and production was halted in 2012. The company then started production of the more mainstream Model S, whose production is slated to end in the second quarter of 2026, together with the company’s Model X SUV.

The Model S is a sports sedan with a starting price of around $100,000. According to Cox data, Tesla sold just 1,172 units of the vehicle in Q1, marking a decline of 8.4%.

Earlier this month, Tesla CEO Elon Musk announced that the company has only a few hundred Model S and X cars left in inventory. Tesla is now looking to clear the production lines at the company’s California factory for its upcoming humanoid robot’s production.

In addition to the Optimus, Tesla is looking to start production of its dedicated robotaxi offering called Cybercab and the Tesla Semi electric heavy truck this year. Earlier this month, Reuters also reported that Tesla is developing an all-new small and cheaper electric SUV, though it is yet to be announced publicly by the company.

How Did Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume remained at ‘low’ levels.

Meanwhile, sentiment around LCID stock rose from ‘bullish’ to ‘extremely bullish’ territory, coupled with ‘extremely high’ message volume.

While RIVN and TSLA stock have gained about 38% and 54% this year, LCID stock has fallen 66%. 

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