Tesla was a driving force in creating the electric vehicle market and became one of the most popular brands across any industry for its technology and focus on sustainable energy. Tesla’s success helped make CEO Elon Musk one of the world’s wealthiest and most famous people.

However, a recent poll indicates that Elon Musk’s decision to wade into a divisive political landscape has tarnished Tesla’s brand.

It could open the door for competitors like Rivian Automotive (RIVN -1.76%), which hopes to establish itself but has struggled to grow its business. Is Tesla’s potential slip the opportunity Rivian needs, and should investors buy the stock?

Here is what you need to know about investing in Rivian today.

Image source: The Motley Fool.

Tesla’s brand has become collateral damage in a divisive political landscape

Elon Musk’s ambition has helped him become a legendary entrepreneur. He has founded, co-founded, or invested in a list of companies, including Tesla and SpaceX, and amassed a $400 billion-plus net worth that he leveraged to buy social media platform Twitter, now known as X.

Musk has waded further into America’s political scene in recent years. The problem with politics isn’t necessarily one’s views or opinions, but politics’ divisive nature. In other words, no matter how you feel, someone will disagree.

Axios conducts an annual poll that tracks the reputations of numerous companies and brands among American consumers. Tesla once had a sterling reputation, but that has changed. The company ranked eighth in the survey in 2021 but fell to 63rd last year and 95th this year.

It’s not an absolute indictment; the poll surveyed only about 16,500 U.S. adults. Still, SpaceX has also slipped, indicating that political blowback has likely contributed to Tesla’s slowing vehicle sales.

Can Rivian capitalize on Tesla’s slip? Management recently altered its 2025 forecast

The automotive industry is competitive, and it costs billions of dollars to build and operate the factories and equipment capable of producing large quantities of electric vehicles. Even Tesla nearly bankrupted itself trying to grow production of its Model 3 from 2017 to 2019.

Rivian has continued to raise money as it works through its growing pains, but its lack of growth in recent years hasn’t been a good sign. The company delivered 50,122 vehicles in 2023, but that only grew to 51,579 last year.

Potential electric vehicle buyers who avoid Tesla can still opt for Rivian, but that largely hasn’t materialized yet. In the fourth quarter, management set 2025 delivery guidance at only 46,000 to 51,000, and lowered that to 40,000 to 46,000 deliveries in Q1, citing how uncertainty regarding tariffs and trade policies may impact consumer demand.

There has just been too little appetite for Rivian’s flagship products, the R1T truck and R1S sport utility vehicle (SUV).

There is still hope, but time is ticking

Tesla’s growth took off when the company launched the Model 3, a cheaper vehicle that appealed to more buyers. Rivian hopes to begin production of the R2, a smaller, more affordable SUV than the R1S, starting at around $45,000, in the first half of next year.

There is increasing pressure on this launch, since Rivian is burning tremendous amounts of cash operating at its current size:

RIVN Free Cash Flow data by YCharts

Rivian still has plenty of near-term liquidity, with over $7.1 billion in cash and a joint venture with Volkswagen. However, if Rivian struggles to generate sales volume, it could eventually trigger continued fundraising and share dilution that squashes any meaningful investment upside. Shareholders have already felt the pain with the stock down 91% from its all-time high in 2021.

In summary, Rivian must still make strides, and Tesla’s political stumbles have not meaningfully helped the Rivian’s existing sales problems. That makes the stock a risky investment. It would probably be wise to watch Rivian from afar until the company starts selling the R2 and demonstrates sufficient success in attracting buyers.