Beautiful Virgin Islands

Saturday, Feb 22, 2025

Tesla's Elon Musk trolls Rivian after blockbuster IPO

Tesla's Elon Musk trolls Rivian after blockbuster IPO

Following its first two days of trading, Rivian is valued at more than $100 billion

Despite Rivian's blockbuster IPO, Elon Musk has warned that the "true test" for the electric vehicle maker and Tesla competitor's success will be to achieve high production and breakeven cash flow.

"There have been hundreds of automotive startups, both electric & combustion, but Tesla is [the] only American carmaker to reach high volume production & positive cash flow in past 100 years," Musk tweeted.

A representative for Rivian did not immediately return FOX Business' request for comment on Musk's tweet.

Rivian, which is backed by Amazon and favored by Jeff Bezos, raised approximately $11.9 billion in its IPO after selling 153 million shares at $78 apiece. In addition, the company has granted underwriters a 30-day option to purchase up to 22.95 million additional shares at the IPO price.

Following its first two days of trading, Rivian is valued at more than $100 billion, above the market values of automotive giants General Motors and Ford Motor Company. Amazon holds a 22.4% stake in Rivian, while Ford holds a 14.4% stake. Shares are up approximately 3% as of the time of publication Friday.


Though Rivian has approximately 55,400 preorders for its R1T pickup and R1S SUV and has reached an agreement with Amazon for 100,000 electric delivery vans by 2030, the company has not generated any material revenue to date. Rivian said in its amended IPO prospectus that it will lose up to $1.28 billion in the third quarter and that revenue will range from zero to $1 million.

Rivian began production and deliveries of the the R1T in September, which starts at $67,500 and has an EPA-estimated 314 miles of range on a single charge. As of Oct. 31, Rivian produced 180 R1Ts and delivered 156 R1Ts. The R1S, which starts at $70,000 and has an EPA-estimated 316 miles of range on a single charge, is expected to begin deliveries in December following completion of ongoing vehicle validation and all required testing.
The company expects to produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss by the end of 2021. In addition, Rivian anticipates its preorders will be filled by the end of 2023. Meanwhile, the company expects to produce and deliver 10 electric delivery vans in 2021.

Rivian recently began production and deliveries of its R1T passenger pickup truck in September, which starts at $67,500 and has an EPA-estimated 314 miles of range. 


Rivian's factory in Normal, Illinois, is currently equipped to produce up to 150,000 vehicles annually. Rivian is aiming to produce approximately 1,310 R1 vehicles and 1,710 commercial vehicles per week, which equates to 65,000 R1 vehicles and 85,000 commercial vehicles, including EDVs, annually.

"We expect to reach a vehicle production rate, which, when annualized, would result in us using 100% of the facility’s current installed capacity of up to 150,000 vehicles by late 2023," Rivian wrote in the filing. "Further, we believe that we will be able to increase the annual production capacity of the Normal Factory up to 200,000 vehicles in 2023 as we introduce additional R1 platform variants and expand the facility. Over the next couple of years, we expect to establish additional domestic production capacity in order to support our product development roadmap and fulfill future anticipated demand."

This isn't the first time Musk has taken a swipe at the competition.

In August, Musk tweeted "Don’t want to be unreasonable, but maybe they should be required to deliver at least one vehicle per billion dollars of valuation *before* the IPO?" in response to reports that Rivian's IPO would value the company's at approximately $80 billion. He also tweeted laughing emojis in response to a report that Rivian was developing a Level 3 autonomous driving system with hands-free capability, similar to Tesla's Full Self-Driving feature.

In October, Musk also responded to a report that the R1T production rate stalled at just over 1 electric truck per day, tweeting "prototypes are trivial compared to scaling production & supply chain."

"If those are solved, achieving positive gross margin is the next nightmare," he added. "Starting a second new vehicle line before first is working will divide resources & amplify probability of failure."

In addition to Musk's Twitter jabs, Tesla has previously filed a lawsuit against Rivian, accusing the company of stealing employees and trade secrets.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×