Lucid and Rivian Launch Budget EVs at the Most Strategic Time

While automakers pumped the brakes on EVs, a few gutsy startups floored it. The Iran conflict is driving gas prices higher, positioning contrarian bets like LucidLCID

and RivianRIVN

for gains. The KraneShares Electric Vehicles ETFKARS

sits 43% higher than last year, but the rally masks a “make-or-break” moment for both companies.

• Targeting affordability, Lucid is launching three midsize models that start below $50K — including the SUVs Cosmos and Earth, plus a two-seat robotaxi for UberUBER
  partnerships.
• Rivian’s R2 SUV will also be released this spring, costing $58K with a 330-mile range — forecasting 20-25K units sold before a $45K model arrives late next year.

The reckoning: Both moves come as interest in EVs rises. Edmunds reported shopping activity hit 22.4%, up from 20.7% the week prior, as drivers eye $1.25K in annual fuel savings over gas. But demand is uneven amid a 3x surge in used EV listings that undercut new models, while September’s elimination of tax credits cratered sales by 33%. Neither Lucid nor Rivian is profitable yet, so they’re betting their cash outlasts the slowdown before the opportunity stalls for good.