Elon Musk mocks Tesla rival Rivian after making his blockbuster market debut
Elon Musk, CEO of Tesla Motors, speaks to the media subsequent to his Mannequin S.
Nora Tam | South China Morning Mail | Getty Photographs
Tesla CEO Elon Musk mentioned excessive manufacturing and break-even money movement would be the actual take a look at for rival automaker Rivian, which had a blockbuster IPO this week and is now valued at greater than $ 100 billion. Greenback has.
“There have been tons of of automotive startups, each electrical and inside combustion, however Tesla is [the] solely American automaker to have excessive quantity manufacturing and optimistic money movement up to now 100 years, “Musk mentioned in a tweet on Thursday.
He added, “I hope they’re [Rivian] capable of obtain excessive manufacturing and balanced money movement. That is the actual take a look at. “
Rivian, which didn’t instantly reply to a CNBC request for touch upon Musk’s tweets, has by no means posted income and expects third-quarter income to be lower than $ 1 million.
There are 55,400 pre-orders for the R1S SUV and R1T pickup truck and a contract to construct 100,000 electrical vans with Amazon by 2030.
However trusting Rivian to assemble the automobiles and ship them profitably is a big enterprise for buyers who already worth the corporate greater than conventional auto giants Ford and Basic Motors.
Regardless of a scarcity of income, Rivian raised round $ 12 billion on its market debut on Wednesday, making the IPO the most important on this planet that yr. The IPO additionally made Rivian the second most precious automaker within the US after Tesla.
As of the primary two days of buying and selling in 2010, Tesla had a market capitalization of simply over $ 2 billion. In the meantime, Rivian CEO RJ Scaringe was price a lot after day two of his enterprise within the public market.
Rivian’s shares rose 57% within the first two days on the Nasdaq. Scaringe, who based Rivian in 2009, owns 17.6 million shares valued at $ 2.2 billion, primarily based on Thursday’s closing value of $ 122.99. The inventory gained greater than 3% in pre-trading on Friday.
“We started to consider the truck, SUV and crossover segments as they introduced an amazing alternative for us to display how a clear, technology-driven automobile might eradicate long-accepted tradeoffs,” wrote Scaringe within the firm’s IPO prospectus.
“We wished to determine our model by providing a mixture of effectivity, on-road efficiency, off-road functionality, purposeful utility and product refinement that merely did not exist available on the market.”
Rivian has poached quite a few former Tesla staff, together with key engineers who helped construct the Tesla Mannequin 3.
It is not the primary time Musk has solid shadows on Rivian. Final month he tweeted: “Prototypes are trivial in comparison with scaling manufacturing and provide chain”.
– Extra protection from Ari Levy of CNBC.