GraniteShares, a $10bn+ asset manager known for its high-risk leveraged and inverse exchange-traded products (ETPs), is expanding its suite of single-stock ETFs with two new products focused on U.S. electric vehicle makers Rivian and Lucid Motors.
The New York-based firm said on Tuesday it has launched the GraniteShares 2x Long LCID Daily ETF and the GraniteShares 2x Long RIVN Daily ETF. The leveraged funds aim to deliver twice the daily return (before fees and expenses) of both EV stocks.
“These funds are designed for sophisticated investors looking to capitalize on short-term movements in the underlying stocks,” GraniteShares said in a statement.
The ETFs are intended for tactical trading rather than long-term investing, and cater to market participants seeking concentrated exposure to high-volatility EV names. The products join GraniteShares’ existing lineup of single-stock leveraged ETFs, which already includes Tesla, Nvidia, and Coinbase.
Lucid and Rivian both went public in 2021 amid surging investor enthusiasm for the EV sector. Lucid debuted via a special purpose acquisition company (SPAC), Churchill Capital Corp IV, while Rivian’s traditional IPO briefly propelled its valuation above Volkswagen’s in November 2021.
Lucid, for its part, eclipsed Ford’s market capitalisation around the same time during the post-IPO rally.
However, both companies have struggled to meet lofty production targets, and investor sentiment has cooled significantly.
Lucid shares peaked at more than $57 in late 2021 but hit a record low of $1.93 in November 2024, as the company repeatedly missed production/ delivery goals. In 2024, Lucid sold around 10,000 vehicles. It aims to roughly double that figure this year — far below the 135,000 units it once forecasted.
Rivian, backed by Amazon, which ordered 100,000 electric delivery vans in a 2019 deal, has faced its own setbacks. Less than six months after its IPO, CEO RJ Scaringe warned that supply chain issues would cut its 2022 production outlook in half—from a potential 50,000 units to just 25,000.
“By launching LCDL and RVNL, we are responding to market demand for more single-stock ETFs, in addition to Tesla, that provide exposure to electric vehicles that are made here in the USA,” said GraniteShares founder and CEO Will Rhind.
The leveraged and inverse ETP space remains a niche corner of the broader $15tn global ETF market.
Baird analyst Ben Kallo raised his price target on Lucid to $3.00 earlier this week, up 50% from a previous target of $2.00.
