TSLA, LCID, RIVN: Why Lucid and Rivian Stocks Are Falling Today — July 23, 2026
Complete. Here is the key summaryLucid (LCID) and Rivian (RIVN) stocks fell in sympathy with Tesla (TSLA), which plunged 14% after reporting a Q2 earnings miss and negative free cash flow. While Tesla posted record revenue and deliveries, it relied on discounts that compressed margins. This signals tough market conditions for unprofitable rivals Lucid and Rivian, who are actively raising capital to fund expansion.
Shares in U.S. electric vehicle makers Lucid (LCID) and Rivian (RIVN) fell on Thursday afternoon. This came as rival Tesla's (TSLA) shares plunged about 14% in afternoon trading following its mixed Q2 2026 earnings released late Wednesday.
Claim 55% Off TipRanks
TSLQ: built for a short position on TSLAEV Stocks Fall in Sympathy with Tesla
Lucid's shares fell harder than Rivian's. LCID stock traded more than 7% lower in afternoon trading compared to Rivian's drop of more than 3%.
Tesla's shares came under pressure on Thursday after the EV giant reported a big miss on its earnings per share (EPS). Its EPS came in at $0.33, falling far short of the Wall Street consensus of $0.53.
In addition, Tesla's free cash flow turned negative for the first time in two years. During the quarter, it came in at -$1.1 billion as the automaker's capital spending hit $5.8 billion.
However, the carmaker posted a quarterly record revenue of $28.24 billion. This marked a 26% increase year-over-year.
A Warning to Rivian and Lucid?
During the quarter, Tesla also delivered 480,126 vehicles. This marks a quarterly record and a 25% increase from a year earlier.
However, Tesla had to rely on sharp discounts, low-interest loans, and heavy spending on promotions to expand its deliveries. This drove up Tesla's production costs and dragged down its automotive gross margins. The margins (excluding regulatory credits) fell from 19.2% in the previous quarter to 16.3%.
This indicates a tougher market condition where EV makers might have to sacrifice their profit margins to boost sales. This is important as Lucid and Rivian both remain unprofitable and still need cash to fund their expansion.
Earlier this month, Lucid disclosed that it drew $800 million from the delayed-draw term loan facility provided by its Saudi Arabia backer. Similarly, Rivian recently launched a $1.2 billion stock sale.
Which EV Stock Is the Best Buy?
On Wall Street, analysts currently have a Hold consensus on Tesla (TSLA), Lucid (LCID), and Rivian (RIVN). However, Lucid (LCID) currently leads in terms of upside.
Lucid's average price target of $8.88 implies about 41% upside ahead. This is even though the stock has the lowest Smart Score of the three stocks.