1 High-Risk, High-Reward EV Stock to Buy, and 1 Money Pit to Avoid
Lucid has recorded six consecutive quarters of record deliveries.
VinFast failed to break into the U.S. and European markets.
Over $14 billion has been invested in VinFast, and it's still losing money.
10 stocks we like better than Lucid Group ›
When looking for an investment that can completely change your returns for the better, you need to have an eye on the future. But that's far easier said than done.
When thinking about the future, it's an exciting time to contemplate where the automotive industry is going. The future for this sector has some pretty interesting things in store, including driverless vehicles, ones that are software-defined, and a slew of new and highly advanced electric vehicles (EVs) that are almost certainly the eventual future of the industry.
If you want to jump into the EV industry, here's a look at one high-risk, high-reward EV start-up and another that investors should avoid.
Steer clear of this EV stock
VinFast Auto (NASDAQ: VFS) is a unique and intriguing EV start-up. The automaker is based in Vietnam, is backed by an extremely wealthy founder named Pham Nhat Vuong, has state-of-the-art production, and thoroughly dominates its home market. VinFast decided its next move would be to enter the U.S. and European markets, two of the most important globally. The problem: It is always going to be a foreign automaker with no customer base, attempting to get its foot in the door. Not an easy task, and not cheap.
After losing billions of dollars to try to become a real player in the U.S. and Europe, Vietnam's richest man is steering the ride in a different direction: focusing on Asian markets such as India, Indonesia, and the Philippines. But VinFast already looks like a money pit. Consider that at least $14 billion has been poured into it from Vuong himself, his conglomerate Vingroup JSC, its affiliates, and external lenders. Yet in 2024, the company booked a $3.2 billion loss.
Making matters worse, Chinese EV start-ups are beginning to expand globally and are finding much more success winning over consumers due to their advanced technology and more affordable pricing. If VinFast can't get a foothold in Asian markets before brutal Chinese competition moves in, it could leave the company playing in only its home market.
While it's tempting to invest in young EV start-ups in the hope of them becoming major industry players, the truth is the automotive industry is ruthlessly competitive, and VinFast hasn't cracked the code so far.
An accelerating start-up
Similar to VinFast, Lucid Group (NASDAQ: LCID) is a high-risk, high-reward EV start-up. The automaker, based in California, says it produces the world's most advanced EVs. Unlike VinFast, however, the company has been able to gain traction in the U.S. market and is starting to emerge as a viable player in the industry.
Its sales volume is still low -- Lucid delivered 3,309 vehicles in the second quarter compared to rival Rivian's 10,661 -- but it's gaining momentum with the second quarter representing the sixth consecutive period of record deliveries.
The good news is that the trend is likely to continue. The automaker is slated to rapidly accelerate production of its newly launched Gravity electric SUV during the second half of the year. With a price tag far lower than the company's Air sedan, the vehicle is expected to expand the company's addressable market considerably.
Another vote of confidence for Lucid, as well as an exciting development in general, was the automaker's recent deal with Uber Technologies and Nuro that is expected to launch later in 2026 in a major U.S. city. The three companies plan to develop a new robotaxi service that combines the leading software-defined vehicle architecture of Lucid's Gravity SUV, the Nuro Driver Level 4 autonomy system, and Uber's global network and fleet management.
Uber plans to deploy 20,000 or more Lucid vehicles over the next six years. The ride-hailing company is also putting its money where its mouth is with a $300 million investment in the automaker.
Winners and losers
There are going to be some serious winners and losers as the automotive industry gears up to evolve more over the next decade than it arguably has over the past century. Some EV start-ups will certainly close their doors, some already have, while some will become small niche players, and others may grow into the next Tesla or something even more impressive.
These are high-risk investments and should remain a small position in any portfolio. Lucid is also burning cash at a rapid rate and will likely have to raise more. All that said, it shows far more upside than foreign rival VinFast.
Do the experts think Lucid Group is a buy right now?
The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Lucid Group make the list?
When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,070% vs. just 184% for the S&P — that is beating the market by 885.55%!*
Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!*
The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 13, 2025
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.
1 High-Risk, High-Reward EV Stock to Buy, and 1 Money Pit to Avoid was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Buying your kid their first phone? Do these 5 things first
When you buy through links on our articles, Future and its syndication partners may earn a commission. For parents, the decision to get your child their first cell phone comes with a lot of questions. There are a handful of logistical hurdles to clear, such as choosing a kid-friendly phone and then making sure they have coverage on one of the best family cell phone just as important is what comes next — setting the ground rules for how your kid uses their new phone and how you plan to enforce them. Guidelines for device usage are crucial for a variety of reasons. They allow you and your child to set and maintain healthy boundaries around issues like screen time, ensuring that phones don't get in the way of homework and other activities or lead to detrimental effects on sleep or mental health. Clear rules also help keep kids safe, protecting their privacy and limiting riskier interactions on social media or in other online spaces. Parents can also help enforce rules governing phone use at school. Dr. Tiffany Munzer, a developmental behavioral pediatrician at the University of Michigan and ambassador for the American Academy of Pediatrics' Center of Excellence on Social Media and Youth Mental Health, notes that parents should first assess their child's or teen's readiness for the responsibility of having a cell phone. For example, you should consider whether your kid has demonstrated that they can be kind and respectful toward others when there's a conflict and that they have both an ability to complete schoolwork independently and a willingness to seek out an adult when needed. Parents should also ensure they are ready to monitor phone use. Once you've decided you and your kid are ready for a phone, here are five things you can do to ease their transition to their first cell phone. Choose the right device Parents can start the rule-setting process well before kids have their first phone in hand, as the device you select helps define boundaries. You don't necessarily need to start with the latest iPhones or Android devices — flip phones and 'dumb' phones allow your child to ease in with basic functions like calling and texting if they're not quite ready for social media and other apps available on smartphones. 'Think critically together about what are the minimum necessary apps to be able to achieve what you might need from a practical standpoint,' Munzer said. Discuss guidelines in advance "Expect and accept the bumps along the way. They're natural parts of learning, not signs of failure." — Jill Murphy, Common Sense Media While you're deciding on a device, you should begin discussing the rules and expectations for phone use with your child. Experts say this conversation should be collaborative, ongoing, and age-specific, as younger kids will have different needs from older teens, and these rules should also be adjusted over time. Common Sense Media, a nonprofit that provides guidance on media use for children, has a helpful guide with age-by-age considerations, while the Center of Excellence on Social Media and Youth Mental Health has a list of conversation starters and prompts for parents. 'Expect and accept the bumps along the way,' said Jill Murphy, Common Sense Media's chief content officer: 'They're natural parts of learning, not signs of failure. The key is maintaining open dialogue and adjusting your approach as your child grows or situations change.' Parents should discuss rules for texting, calling, taking photos and videos, downloading and using apps (including games and social media), and posting online. Munzer also recommends that parents discuss their own challenges with device usage and get their child's or teen's input. Create a family media agreement Don't just talk about the rules for phone use and the consequences for breaking said rules — write them down. A family media agreement or family media plan is a contract you can refer back to that helps create transparency, understanding, and accountability. Munzer advises that all family members should be included in this process, as kids and teens are more likely to develop healthy phone behaviors if these are modeled by parents. The agreement may cover topics like screen time limits, privacy guidelines, and in what circumstances parents can or will review device activity — an important consideration for building and maintaining trust with your child. If and when kids do violate guidelines laid out in the agreement, parents should address these concerns promptly and calmly. Help your child understand the purpose of the rules you've set, and use natural consequences that have a logical connection to the violation — for example, limiting certain access to an app rather than taking away the phone. Utilize on-device parental control settings If your child has a smartphone, there are many on-device and third-party parental controls you can employ for everything from limiting screen time and app downloads to monitoring what kids are seeing and sending. On iOS, Screen Time includes settings to restrict explicit content, purchases, and downloads, as well as control access to specific settings and features. On Android, Family Link provides similar parental controls ranging from global and individual app time limits to content filters to device location notifications. The best parental control apps can augment those on-device settings, too. Parents can disable in-app purchases and require approval for new downloads and should also enforce settings to protect your child's privacy and security: Set up device passcodes and biometrics Enable 'Find My Phone' access for trusted contacts Turn on automatic updates and backups Turn on message filters Disable non-essential location sharing permissions (such geolocation for photos) Murphy advises parents to implement all privacy protections available on their child's device and in apps; they should also ensure that any accounts — including social media — are child- or teen-specific. (Accounts for minors typically have built-in restrictions.) Include school device policies School rules for phone use may be different than those at home, but you should consult and incorporate them into your family media agreement. This includes both your child's personal device as well as tablets or computers provided by the school. If the school communicates phone-related concerns or you notice excessive phone use during school hours, address these issues promptly using the guidelines in your plan. Giving your child or teen their first phone is an important step for building healthy media and digital device habits. Thoughtful planning and ongoing communication can help ease this transition for the entire family. More from Tom's Guide Feature phones are now having a 'renaissance' — here's why Ultimate back to school guide 2025: Laptops, Chromebooks, headphones and more Apple launches 5 upgrades to help parents protect kids online
Yahoo
an hour ago
- Yahoo
Tengku Zafrul: Malaysia controlling stream of rare earth in bid to keep value, keeping both US and China at bay
KUALA LUMPUR, Aug 18 — Malaysia is banning exports of unprocessed rare earths while at the same time attempting to court downstream investment to retain their value added at home, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz said. Speaking in an interview with US-based CNBC's 'Squawk Box Asia', Tengku Zafrul said Malaysia has discussed its rare-earth strategy with both Washington and Beijing during broader negotiations. 'Today, we engage both sides. And to be fair, both China and US have never said that you can't supply to the other, right? You can't not do business with the other,' he said. He also said that both countries have reminded Malaysia that it cannot have two different standards on rare earth exports. 'So we have to be consistent, to be neutral. You have to consider, we can't have policies which differentiates our relationship with one party to the other, to one country to another. 'So that's, I think, key. Once you do that, then it's very hard to defend that neutrality position,' he added. Tengku Zafrul pointed to the moratorium on rare earth elements exports, highlighting Australian miners Lynas as among firms operating under rules that permit exports after processing. 'So what we are doing now is we're saying that, look, we invite all companies to come to Malaysia and to be part of the supply chain to invest in the downstream activities of rare earth, and then we can then export the value-add of those right now,' he said. Tengku Zafrul argued the approach maximises economic spillovers and strengthens the case for keeping processing domestic. He also framed the policy as a way to anchor higher-value activity in Malaysia while staying open to all buyers under equal rules. Earlier this month, Tengku Zafrul announced that Malaysia will no longer allow the export of raw rare earth minerals, in a move to promote local downstream development. Tengku Zafrul said Malaysia remains open to foreign investment, but it must involve local processing, job creation, and technology transfer.
Yahoo
5 hours ago
- Yahoo
1 High-Risk, High-Reward EV Stock to Buy, and 1 Money Pit to Avoid
Key Points Lucid has recorded six consecutive quarters of record deliveries. VinFast failed to break into the U.S. and European markets. Over $14 billion has been invested in VinFast, and it's still losing money. 10 stocks we like better than Lucid Group › When looking for an investment that can completely change your returns for the better, you need to have an eye on the future. But that's far easier said than done. When thinking about the future, it's an exciting time to contemplate where the automotive industry is going. The future for this sector has some pretty interesting things in store, including driverless vehicles, ones that are software-defined, and a slew of new and highly advanced electric vehicles (EVs) that are almost certainly the eventual future of the industry. If you want to jump into the EV industry, here's a look at one high-risk, high-reward EV start-up and another that investors should avoid. Steer clear of this EV stock VinFast Auto (NASDAQ: VFS) is a unique and intriguing EV start-up. The automaker is based in Vietnam, is backed by an extremely wealthy founder named Pham Nhat Vuong, has state-of-the-art production, and thoroughly dominates its home market. VinFast decided its next move would be to enter the U.S. and European markets, two of the most important globally. The problem: It is always going to be a foreign automaker with no customer base, attempting to get its foot in the door. Not an easy task, and not cheap. After losing billions of dollars to try to become a real player in the U.S. and Europe, Vietnam's richest man is steering the ride in a different direction: focusing on Asian markets such as India, Indonesia, and the Philippines. But VinFast already looks like a money pit. Consider that at least $14 billion has been poured into it from Vuong himself, his conglomerate Vingroup JSC, its affiliates, and external lenders. Yet in 2024, the company booked a $3.2 billion loss. Making matters worse, Chinese EV start-ups are beginning to expand globally and are finding much more success winning over consumers due to their advanced technology and more affordable pricing. If VinFast can't get a foothold in Asian markets before brutal Chinese competition moves in, it could leave the company playing in only its home market. While it's tempting to invest in young EV start-ups in the hope of them becoming major industry players, the truth is the automotive industry is ruthlessly competitive, and VinFast hasn't cracked the code so far. An accelerating start-up Similar to VinFast, Lucid Group (NASDAQ: LCID) is a high-risk, high-reward EV start-up. The automaker, based in California, says it produces the world's most advanced EVs. Unlike VinFast, however, the company has been able to gain traction in the U.S. market and is starting to emerge as a viable player in the industry. Its sales volume is still low -- Lucid delivered 3,309 vehicles in the second quarter compared to rival Rivian's 10,661 -- but it's gaining momentum with the second quarter representing the sixth consecutive period of record deliveries. The good news is that the trend is likely to continue. The automaker is slated to rapidly accelerate production of its newly launched Gravity electric SUV during the second half of the year. With a price tag far lower than the company's Air sedan, the vehicle is expected to expand the company's addressable market considerably. Another vote of confidence for Lucid, as well as an exciting development in general, was the automaker's recent deal with Uber Technologies and Nuro that is expected to launch later in 2026 in a major U.S. city. The three companies plan to develop a new robotaxi service that combines the leading software-defined vehicle architecture of Lucid's Gravity SUV, the Nuro Driver Level 4 autonomy system, and Uber's global network and fleet management. Uber plans to deploy 20,000 or more Lucid vehicles over the next six years. The ride-hailing company is also putting its money where its mouth is with a $300 million investment in the automaker. Winners and losers There are going to be some serious winners and losers as the automotive industry gears up to evolve more over the next decade than it arguably has over the past century. Some EV start-ups will certainly close their doors, some already have, while some will become small niche players, and others may grow into the next Tesla or something even more impressive. These are high-risk investments and should remain a small position in any portfolio. Lucid is also burning cash at a rapid rate and will likely have to raise more. All that said, it shows far more upside than foreign rival VinFast. Do the experts think Lucid Group is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Lucid Group make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,070% vs. just 184% for the S&P — that is beating the market by 885.55%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy. 1 High-Risk, High-Reward EV Stock to Buy, and 1 Money Pit to Avoid was originally published by The Motley Fool
