Elon Musk taunts Tesla rival Rivian after its blockbuster market debut

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  • “There have been hundreds of automotive startups, both electric and combustion, but Tesla is [the] “The only US carmaker to reach high volume production and positive cash flow in the last 100 years,” Musk said in a tweet on Thursday.
  • Rivian has never recorded revenue and it expects less than $1 million in sales in the third quarter.
  • It says it has 55,400 pre-orders for the R1S SUV and R1T pickup truck and has a contract with Amazon to build 100,000 electric vans by 2030.

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Tesla CEO Elon Musk said higher production and break-even cash flows would be the perfect test for rival carmaker Rivian, which had a blockbuster IPO on Wednesday and now has a market value of over $100 billion.

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“There have been hundreds of automotive startups, both electric and combustion, but Tesla is [the] The only US carmaker to reach high volume production and positive cash flow in the past 100 years,” Musk said. Tweet Thursday.

He continued: “I hope they are [Rivian] Capable of achieving high production and broken cash flow. That’s the real test.”

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Rivian, which did not immediately respond to Businesshala’s request for comment on Musk’s tweet, has never reported revenue and it expects less than $1 million in sales in the third quarter.

It says it has 55,400 pre-orders for the R1S SUV and R1T pickup truck and has a contract with Amazon to build 100,000 electric vans by 2030.

But relying on Rivian to assemble the vehicles and distribute them profitably represents a bigger gamble for investors who are already valuing the company more than traditional auto giants Ford and General Motors. .

Despite the lack of revenue, Rivian raised about $12 billion in its market debut, making the IPO the largest IPO in the world this year. The IPO made Rivian the second most valuable carmaker in the US after Tesla.

After its first two days of trading in 2010, Tesla’s market cap stood at just over $2 billion. Meanwhile, after his company’s second day in the public market, Rivian’s CEO, RJ Scaring, was so valuable on his own.

Rivian shares jumped 57% in its first two days on the Nasdaq. Scaring, who founded Rivian in 2009, owns 17.6 million shares, valued at $2.2 billion, based on Thursday’s closing stock price of $122.99.

“We started thinking about the truck, SUV and crossover segments because they presented a great opportunity for us to demonstrate how a clean sheet, technology-focused vehicle can eliminate long-accepted agreements,” Scaring of the company IPO prospectus,

“We wanted to establish our brand by providing a combination of efficiency, on-road performance, off-road capability, functional utility, and product refinement that did not exist in the market place.”

Rivian has hunted down several former Tesla employees, including the lead engineers who helped build the Tesla Model 3.

This isn’t the first time Musk has cast a shadow over Rivian. Last month he tweeted “prototypes are trivial compared to scaling up production and supply chains.”

–Additional reporting by Ari Levy.

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