Rivian CEO RJ Scaringe Warns Of 'Shocking Lack Of Choice' In US EV Market, Says Only Tesla Competes Under $50K
Rivian Automotive Inc. (NASDAQ:RIVN) CEO RJ Scaringe has shared that the U.S. EV market is suffering from a lack of choice for consumers.
Constraints At Supply Side, Says RJ Scaringe
Speaking at Fortune's Brainstorm AI event, the CEO shared that the market was grappling with supply-side issues, Business Insider reported on Tuesday. "I really think the constraint isn’t the demand side, I think it’s the supply side," Scaringe shared. He added that compared to markets like Europe and China, the U.S. EV sector had a "shocking lack of choice."
Scaringe outlined that for American consumers interested in EVs, the only realistic choice under $50,000 was a Tesla Inc. (NASDAQ:TSLA) vehicle. "If you think of it as a consumer, you have 300 different internal combustion engine choices," Scaringe said, but conceded that there aren't many "highly compelling" EV choices in the price range.
Notably, Rivian is gearing up to launch the R2 crossover SUV, which is reportedly going to retail for $45,000. During its third-quarter earnings call last month, the automaker shared that the R2 deliveries would commence sometime in the first half of next year.
Trump Admin Touts Affordability And Choice
The comments come as the Trump administration has been touting the recently relaxed Corporate Average Fuel Economy (CAFE) Standards as a win for consumers, with Transportation Secretary Sean Duffy saying that the regulations would bring back choice and affordability for consumers.
However, the relaxed norms could prove to be a headwind for EV makers like Rivian, which also rely on ZEV credit sales as a major revenue stream. Rivian had shared earlier that it had lost over $100 million in revenue due to the changing policies.
RJ Scaringe Thinks EV Credit Rollback Is A Tailwind
Despite the White House's anti-EV stance, Scaringe shared that the rolling back of the $7,500 Federal EV credit is a boost for Rivian, as it would mean less competition from legacy automakers in the EV segment.
Rivian recently reported a boost in sales during November, as it sold 4,500 units of its R1T and R1S Pickup trucks, which constitutes a 24% YoY surge in sales for the automaker.
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Price Action: RIVN surged 0.17% to $17.74 during After-hours trading, according to Benzinga Pro data.
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