Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRyan Vanzo, The Motley FoolSun, July 5, 2026 at 7:20 PM GMT+2 3 min readIf you think Tesla is an electric vehicle (EV) stock, think again. That company is now one of the largest artificial intelligence (AI) stocks in the world. In fact, AI is likely a much bigger contributor to the company's $1.3 trillion valuation than automobile manufacturing.Tesla's massive valuation and status as a bona fide AI stock are due to several factors. The biggest factor, however, is the promise of self-driving vehicles.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Autonomous driving software is rapidly advancing thanks to artificial intelligence technologies. Experts agree that robotaxis should become a multitrillion-dollar opportunity globally. Whichever automaker cracks the code of full autonomy using AI, therefore, will win big. And Tesla arguably has one of the most advanced self-driving systems in the world.Tesla, however, isn't the only EV maker shifting its focus to AI and self-driving vehicles. There is a Tesla competitor following the same growth trajectory, yet its valuation is significantly smaller.On the surface, Rivian (NASDAQ: RIVN) looks like just another EV stock. Last year, the company had two EVs in its lineup -- the R1T and R1S -- both of which cost upward of $100,000 when including options, taxes, and fees. This year, however, it started shipments of its R2 SUV, its first vehicle priced under $50,000. Two more affordable models are set for release sometime in 2028.These new vehicles are tightly tied into Rivian's new strategic focus, which places a heavy emphasis on AI."What I think is going to happen is over the next five years consumers are going to increasingly just expect certain things," Rivian CEO RJ Scaringe told reporters in June. He believes autonomous vehicles with embedded AI features will quickly become the default for the industry. "From a societal point of view, it's just going to become more the way things work."Image source: Rivian.Scaringe's vision for the future is a big reason Rivian has ramped up investments in both AI and autonomy, to the point that the company quietly dropped its profitability targets for 2027.There are already early indications that Rivian's bets are taking off. In March, Uber Technologies agreed to invest up to $1.25 billion into Rivian in exchange for up to 50,000 R2 SUVs. Those vehicles will be used to power Uber's robotaxi division. This deal gives Rivian strong early social validation for its autonomy development and road map.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info