Rivian, an electric car company owned by Amazon and Ford, made its big debut in Wall Street last week. By Thursday, its market value went up to $100 billion making it the biggest IPO since Facebook and the biggest automotive company behind Tesla.
After Elon Musk heard the news of Rivian’s success, he tweeted that he hoped that the company could keep production and cash flow balanced:
I hope they’re able to achieve high production & breakeven cash flow. That is the true test.
There have been hundreds of automotive startups, both electric & combustion, but Tesla is only American carmaker to reach high volume production & positive cash flow in past 100 years.
— Elon Musk (@elonmusk) November 11, 2021
Last month, he also tweeted that “prototypes are trivial compared to scaling production and supply chain.”
According to Car and Driver, the new company has begun to deliver their first production vehicle, the R1T. The R1T is an electric truck built for off-roading. There is one electric motor per wheel, a frunk, and a space between the backseats and the bed called the Gear Tunnel. This could be used for extra storage or a 1440-watt electric stove. This is one of many accessories that you can get for this space.
Now, Rivian has 55,400 pre-orders of the R1S SUV in the R1T, and they have a contract to build 100,000 electric Amazon vans by 2030.
According to RJ Scaring, who founded Caribbean in 2009, The company wanted their cars to stand out:
“We began thinking about the truck, SUV, and crossover segments as they presented a massive opportunity for us to demonstrate how a clean sheet, technology-focused vehicle could eliminate long accepted compromises,” and that, “we wanted to establish our brand by delivering a combination of efficiency, on-road performance, off-road capability, functional utility, and product refinement that simply didn’t exist in the market.”
Though reports took Elon Musk’s tweets as a dig against Rivian, he makes a fair point about keeping up with demand. As of now, Cybertruck orders have been pushed back until 2023 and I really doubt that Musk is worried about having a rival company. I think that it is important to acknowledge that Rivian and other electric car companies would not have been possible now without the success of Tesla.