Rivian's debut on Nasdaq was Wednesday. It closed 30% higher than its offer price.
Elon Musk, CEO of Tesla, stated in a tweet that Rivian would face "true tests" if it produces high levels and has a low cash flow.
Musk was responding to a tweet claiming that Tesla has been selling its Roadster model for 2 years and plans to launch Model S once it goes public.
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Elon Musk spoke out about Rivian, a Tesla competitor, just days after its IPO debut.
The Tesla CEO stated in a tweet that Rivian would need to achieve high production and breakeven cash flows. However, Tesla is the only American carmaker that has achieved this goal in the past 100 years.
Musk responded to a tweet pointing out that Tesla, which is cash flow-positive, had already sold its Roadster model for 2 years and plans to launch Model S when it goes public in 2010.
Rivian, on the other hand, has just begun selling its vehicles, and has reported a net loss in excess of $1 billion in half of this year.
Rivian's debut on Nasdaq Wednesday saw it close 30% higher than its original offering price. On Thursday, Rivian's shares posted gains and closed 22% higher. The company's market capital is now more than $100 billion, which makes it more valuable that legacy automakers Ford or General Motors.
Musk made the comment on Rivian's competitor before. He tweeted last month that prototypes were trivial when it comes to scaling production and supply chain. This was in response to another tweet regarding Rivian's electric vehicle production rate.
Rivian didn't immediately respond to Insider’s request for comment regarding Musk's tweet.
