Tesla’s rise from a niche electric car maker to a company worth more than $1 trillion offers an important lesson for investors hunting for the next big EV winner. Elon Musk’s original strategy was straightforward: start with an expensive, desirable vehicle, use the cash and experience gained to move into cheaper models, and eventually reach a mass-market audience.

That strategy took years to play out, but it gave Tesla the manufacturing scale, cash generation and brand recognition needed to pursue bigger opportunities such as autonomous driving and robotaxis.

Following in Tesla’s wake, both Rivian (NASDAQ:RIVN) and Lucid (NASDAQ:LCID) are trying to establish themselves as major EV players, but they are taking rather different routes. And with Rivian valued at roughly $23 billion vs. less ~$1.62 billion for Lucid, the two stocks offer very different risk-reward profiles.

Investor Ryan Vanzo, who contributes to The Motley Fool, believes that for those looking for a potential Tesla successor, one of them is a far more likely candidate to give the EV leader a run for its money.

The difference between the way these companies are going about their business is particularly clear when looking at the latest vehicle launches. Lucid’s Gravity SUV is positioned firmly at the luxury end of the market, with a starting price of almost $126,000. Once options, taxes and other costs are included, buyers could easily be looking at more than $150,000.

That may help Lucid build a premium brand, but it does little to solve one of the biggest challenges facing an EV startup: achieving the volume necessary to build a sustainable business.

Rivian’s strategy looks very different. Its R2 SUV starts at roughly $45,000, with more expensive versions reaching around $60,000. That puts the vehicle much closer to the price range of mainstream consumers. Rivian also plans to follow the R2 with the cheaper R3 and R3X, giving it a potential path toward much greater production volumes.

Vanzo argues that this puts Rivian closer to the playbook Tesla used to build its business. Lucid has lower-priced vehicles in development too, but its planned mass-market model has already been pushed back from 2026 to late 2027, raising questions about how quickly it can expand beyond the luxury market.

The same advantage might extend to autonomous driving and robotaxis. Both companies are developing self-driving technology, but Rivian’s much larger market value gives it considerably more financial firepower. Vanzo notes that Rivian could raise an amount greater than Lucid’s entire market cap through only a relatively small amount of shareholder dilution.

There is also evidence that outside companies see value in Rivian’s manufacturing ambitions. Uber has agreed to purchase as many as 50,000 R2 vehicles as it builds out its robotaxi plans. Its separate agreement with Lucid covers 35,000 vehicles.

That does not guarantee Rivian will succeed, and Uber is clearly spreading its bets. Still, Vanzo sees the larger commitment to Rivian as another indication that the company is better positioned to supply vehicles at scale while developing the software needed for autonomous driving.

For investors willing to accept the risks of an unprofitable EV maker, Vanzo therefore sees Rivian as the more compelling choice. “Despite a higher valuation, Rivian shares look more attractive given the company’s larger manufacturing scale, low-cost model launches, and a seemingly more advanced self-driving tech platform,” the investor summed up. (To watch Vanzo’s track record, click here)

The Street, however, does not seem to be enamored with either EV maker, as both claim Hold consensus ratings. RIVN shares are expected to appreciate by 8% over the coming year, considering the average price target clocks in at $17.06. Interestingly, assisted by a highly bullish call, LCID’s $8.71 average target points to 12-month returns of 115%. (See RIVN stock forecast or LCID stock forecast)