Key Points
Robotaxis could be a $10 trillion market.
Expect two EV stocks to take advantage.
- 10 stocks we like better than Rivian Automotive ›
Don't confuse electric vehicle (EV) stocks with traditional automotive stocks. In my view, most conventional auto stocks are akin to most manufacturing businesses. That means high capital expenditures (capex), exposure to shifting consumer trends, and growth rates that mirror the transportation industry overall.
EV businesses are something else entirely. Companies that specialize in them must build their vehicles to sell to consumers, but they are also exposed to a $10 trillion global opportunity powered by rapid advances in artificial intelligence (AI) -- an exposure that nearly every traditional auto stock lacks.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
If you want exposure to this $10 trillion market, there are two EV stocks in particular to target.
Using AI to target a huge opportunity
What exactly is this $10 trillion opportunity? In a word: robotaxis. "We think US$8 [trillion] to US$10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," Cathie Wood, chief executive officer of ARK Invest, told a conference in Hong Kong a year ago, according to a transcript. "That's how quickly AI is going to cause these things to happen."
Robotaxis will arrive first, not self-driving private vehicles. And they're arriving sooner than you may think. "While L4 robo-taxis are now available in the first cities in the United States and China, the global rollout of robotaxis is now expected to become reality at a large scale in 2030," a recent report from consulting firm McKinsey said, referring to level 4 vehicle autonomy, just below complete self-driving ability.
McKinsey said private self-driving vehicles will scale up meaningfully sometime by 2031, with trucking going autonomous by 2032. Experts expect robotaxis to be the first commercial application for L4 in mobility, not privately owned cars, McKinsey says.
Image source: Rivian.
Which EV stocks are best positioned to benefit from the quickly emerging robotaxi market? Tesla (NASDAQ: TSLA) is the clear first choice. The company has aggressively pursued full self-driving capabilities for years.
This year, it established a $2 billion stake in xAI, the start-up of Tesla Chief Executive Officer Elon Musk. And much of its $20 billion capex plan for 2026 focused on AI and autonomy investments. Production of its Cybercab has already begun, too.
Tesla has all the parts in place -- many of which are already in use -- to take a sizable share of the robotaxi market. The only thing investors need to stomach is the stock's price tag: a market cap of $1.7 trillion despite declining auto sales year over year.
Rivian Automotive (NASDAQ: RIVN) is perhaps my favorite pick for targeting the nascent robotaxi market. Compared to Tesla's $1.7 trillion valuation, Rivian's relatively diminutive $20 billion valuation simply provides more upside. And while the company may not have some of Tesla's competitive advantages, it's still clearly positioned to grow.
This year, Rivian decided to ramp up its investments in AI and self-driving, so much so that it no longer expects to reach certain profit metrics by 2027. According to filings, the company said it no longer anticipates being positive based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2027 because of an expected increase in research and development spending for its autonomy road map.
Rivian's investments are already paying off. In March, Uber Technologies agreed to buy as many as 50,000 Rivian vehicles in a $1.25 billion deal for its own robotaxi service, a strategy that I expect from other robotaxi providers without their own manufacturing capabilities.
Rivian is positioned more as a supplier to the robotaxi market rather than a direct competitor. But as the saying goes, when there's a gold rush, sell shovels.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,072!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,352!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 29, 2026.
Ryan Vanzo 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
