Tesla Motors CEO Elon Musk speaks to the media subsequent to its Model S.

Nora Tam | South China Morning Post | Getty Images

Tesla CEO Elon Musk stated excessive manufacturing and break-even money move would be the true check for rival carmaker Rivian, which had a blockbuster IPO this week and now has a market worth of greater than $100 billion.

“There have been lots of of automotive startups, each electrical and combustion, however Tesla is [the] solely American carmaker to achieve excessive quantity manufacturing & constructive money move in previous 100 years,” Musk stated in a tweet Thursday.

He added, “I hope they’re [Rivian] capable of obtain excessive manufacturing and breakeven money move. That is the true check.”

Rivian, which didn’t instantly reply to a CNBC request for touch upon Musk’s tweets, has by no means recorded income and it expects lower than $1 million in gross sales for the third quarter.

It says it has 55,400 preorders for its R1S SUV and R1T pickup truck and a contract to construct 100,000 electrical vans with Amazon by 2030.

But trusting Rivian to assemble the automobiles and ship them profitably represents an enormous gamble for buyers who’re already valuing the corporate greater than conventional auto giants Ford and General Motors.

Despite the shortage of income, Rivian raised round $12 billion in its market debut Wednesday, making the preliminary public providing the biggest on the earth this 12 months. The IPO additionally made Rivian the second most precious automotive producer within the U.S. behind Tesla.

After its first two days of buying and selling in 2010, Tesla had a market cap of simply greater than $2 billion. Meanwhile, R.J. Scaringe, CEO of Rivian, was price that a lot on his personal after his firm’s second day on the general public market.

Rivian shares popped 57% of their 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 inventory worth of $122.99. The shares have been up greater than 3% in premarket buying and selling Friday.

“We started fascinated by the truck, SUV, and crossover segments as they introduced an enormous alternative for us to reveal how a clear sheet, technology-focused automobile may get rid of lengthy accepted compromises,” Scaringe wrote within the firm’s IPO prospectus.

“We needed to determine our model by delivering a mixture of effectivity, on-road efficiency, off-road functionality, useful utility, and product refinement that merely did not exist out there.”

Rivian has poached quite a few former Tesla workers, together with key engineers who helped to construct the Tesla Model 3.

It’s not the primary time Musk has thrown shade at Rivian. Last month he tweeted “prototypes are trivial in comparison with scaling manufacturing and provide chain.” 

— Additional reporting by CNBC’s Ari Levy.


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