Tesla Motors CEO Elon Musk spoke to the media next to his Model S.
Tan Nara | South China Morning Post | Getty Images
Tesla CEO Elon Musk said that high production and break-even cash flow will be a real test for rival automaker Rivian. The company conducted a sensational IPO on Wednesday and has a market value of more than $100 billion. .
“There are already hundreds of automotive startups, including electric vehicles and internal combustion engine vehicles, but Tesla is [the] The only American automaker that has achieved high-volume production and positive cash flow in the past 100 years,” Musk said in a statement. tweet Thursday.
He added: “I hope they [Rivian] Able to achieve high production and break-even cash flow. This is the real test. “
Rivian did not immediately respond to CNBC’s request for comment on Musk’s tweets. It has never recorded revenue and expects sales in the third quarter to be less than $1 million.
The company said that its R1S SUV and R1T pickup trucks have booked 55,400 units, and it has signed a contract with Amazon to produce 100,000 electric trucks by 2030.
However, believing that Rivian assembles cars and delivers them profitably is a huge gamble for investors who have valued the company higher than traditional car giants Ford and General Motors.
Despite insufficient revenue, Rivian raised approximately $12 billion on its debut, making it the world’s largest IPO this year. The IPO also made Rivian the second most valuable automaker in the United States after Tesla.
After the first two days of trading in 2010, Tesla’s market value just exceeded $2 billion. At the same time, RJ Scaringe, Rivian’s CEO, gained value the day after his company went public.
Rivian’s share price soared 57% in the first two days of its NASDAQ listing. Scaringe founded Rivian in 2009. Based on Thursday’s closing price of $122.99, he owns 17.6 million shares, valued at $2.2 billion.
Scaringe wrote in the company’s IPO prospectus: “We began to consider the truck, SUV, and crossover market segments because they provide us with a huge opportunity to show how a clean, technology-centric vehicle can be Eliminate long-term accepted compromises.”
“We hope to build our brand by providing a combination of efficiency, on-road performance, off-road capability, functional utility, and product improvements that simply don’t exist in the market.”
Rivian poached many former Tesla employees, including key engineers who helped build the Tesla Model 3.
This is not the first time Musk has cast a shadow on Rivian. Last month, he wrote on Twitter: “Compared with expanding production and supply chains, prototypes are insignificant.”
— Supplementary report by Ari Levy.
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