Photo: Rivian
As Tesla is nearing Cybertruck series production, life for Rivian will become more difficult as it competes head-on with the electric pickup. Still, Rivian CEO RJ Scaringe thinks R1T's customers don't overlap with Cybertruck's potential buyers. Moreover, he believes that competition is a good thing.
Apart from Tesla, other EV startups have struggled to ramp production and reach profitability. Given repeated price cuts in the past year, Tesla is dictating the EV market direction in all the market segments it operates on. This de-facto price war has put tremendous pressure on startups, which were already bleeding money. Lucid Motors, one of the most promising EV makers, is barely staying afloat as it tries to compete with Tesla at the high end of the market.
Rivian has been spared the drama so far, as its two vehicle models, the R1T pickup and R1S SUV, have no equivalent from Tesla. Sure, both models have strong competitors from the traditional carmakers, but Rivian managed to fend off the threats from the likes of Ford and GM. Neither can produce enough EVs or as good as Rivian's, so there's nothing to worry about yet. Still, as Tesla prepares to start Cybertruck production, things are set to change.
The long-awaited electric pickup has promised to upend the market with cutting-edge technologies and unheard-of features that would give Rivian a run for its money. The fact that it is so late to the party gave the EV startup some breathing room, but that is set to change in 2024. Is Rivian going to suffer with the launch of the Cybertruck? That depends mainly on its features and price, which are both unknown.
Rivian CEO RJ Scaringe thinks there's no real competition in the segment. Asked during the Code Conference 2023 about the Cybertruck threat, Scaringe showed off impressive diplomacy. He praised the Cybertruck, saying, "It's great that a product like that exists in the world," while dismissing the idea that Rivian's buyers overlap with those of the Tesla Cybertruck.
That's only partly true. Rivian targets the off-road enthusiast crowd with its "adventure vehicles," but that doesn't mean Tesla won't steal its customers. Even though the Cybertruck is neither a work truck nor an off-road powerhouse, many opportunistic buyers will flee to Tesla. Some of them would've bought a Rivian because it was available and there were not many alternatives. Few R1T owners are interested in putting the Rivian to work, so the Cybertruck lacking in this department would not make a difference.
RJ Scaringe once again proved he could keep his opinions to himself when asked about the Cybertruck's "gigawiper." "If you like that, it's good," said Scaringe, which likely means there's not gonna be a Rivian wearing such an abomination. Scaringe also doesn't see the need for an autonomous vehicle at this stage, another area where he doesn't follow Musk's ideas.
Rivian has been spared the drama so far, as its two vehicle models, the R1T pickup and R1S SUV, have no equivalent from Tesla. Sure, both models have strong competitors from the traditional carmakers, but Rivian managed to fend off the threats from the likes of Ford and GM. Neither can produce enough EVs or as good as Rivian's, so there's nothing to worry about yet. Still, as Tesla prepares to start Cybertruck production, things are set to change.
The long-awaited electric pickup has promised to upend the market with cutting-edge technologies and unheard-of features that would give Rivian a run for its money. The fact that it is so late to the party gave the EV startup some breathing room, but that is set to change in 2024. Is Rivian going to suffer with the launch of the Cybertruck? That depends mainly on its features and price, which are both unknown.
Rivian CEO RJ Scaringe thinks there's no real competition in the segment. Asked during the Code Conference 2023 about the Cybertruck threat, Scaringe showed off impressive diplomacy. He praised the Cybertruck, saying, "It's great that a product like that exists in the world," while dismissing the idea that Rivian's buyers overlap with those of the Tesla Cybertruck.
That's only partly true. Rivian targets the off-road enthusiast crowd with its "adventure vehicles," but that doesn't mean Tesla won't steal its customers. Even though the Cybertruck is neither a work truck nor an off-road powerhouse, many opportunistic buyers will flee to Tesla. Some of them would've bought a Rivian because it was available and there were not many alternatives. Few R1T owners are interested in putting the Rivian to work, so the Cybertruck lacking in this department would not make a difference.
RJ Scaringe once again proved he could keep his opinions to himself when asked about the Cybertruck's "gigawiper." "If you like that, it's good," said Scaringe, which likely means there's not gonna be a Rivian wearing such an abomination. Scaringe also doesn't see the need for an autonomous vehicle at this stage, another area where he doesn't follow Musk's ideas.
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