A Day After Rival’s Big IPO, Musk Throws New Shade at Rivian
Even with Rivian Automotive Inc.'s blockbuster IP0, Elon Musk doesn't sound particularly confident about the company's prospects.
Rivian intends to increase manufacturing rates and break even on cash flow, according to Tesla Inc.’s CEO. In a tweet on Thursday, he also mentioned that “Tesla is the only American carmaker to attain high volume manufacturing & positive cash flow in the previous 100 years” out of hundreds of companies.
Rivian, founded by R.J. Scaringe, completed the largest initial public offering (IPO) in the world this year on Wednesday. The company is now worth $107 billion after a 22 percent rise on Thursday, making it the fifth-largest manufacturer by market cap.
Amazon has commissioned the company to construct battery-electric delivery vans, as well as a pickup vehicle aimed at outdoor enthusiasts. Rivian lost about $1 billion in the first half of the year and expects to produce 150,000 vehicles per year at its main plant by late 2023.
Rivan has hired a large number of former Tesla personnel, including key engineers who worked on the Model 3 launch.
