The Challenges Facing Rivian in its Race to Become the Next Tesla
The tale of the tape
The most glaring difference between Rivian and Tesla appears when comparing production and income. In 2023, Rivian manufactured 57,232 vehicles, a new record for the company. During that same span, Tesla produced more than 1.8 million vehicles, another record.
Tesla's True Strength
In 2023, Tesla raked in a whopping $15 billion. In stark contrast, Rivian lost nearly $4.5 billion as expenses continued to outpace revenue.
Many Rivian bears and Tesla bulls point to this lack of profits as reason enough to avoid the start-up.
- Rivian might be further ahead than Tesla was in its early years.
- Start-ups like Rivian face stiffer competition in today's EV market. The reason Rivian will never be Tesla
In the previous era, the margin of error was significantly wider, which meant Tesla's lack of profitability wasn't as detrimental as it would be today.
Expectations are that the growth of the EV market is expected to slow in the U.S. in 2024.
...This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.