He may have a point.
Talk tough
Rivian, an electric car company, exploded onto the public markets this week with a massive $116 billion IPO. But not everyone is drinking champagne yet.
Elon Musk, Tesla CEO and Jeff Bezos’ playground bully, took to Twitter on Thursday to criticize the huge valuation of rival carmaker Rivian. Rivian, despite its IPO numbers, will have to increase vehicle production and reach "breakeven cash flow", he said to prove its merit.
Musk tweeted, "There have been hundreds and hundreds of automobile startups, both combustion and electric, but Tesla [is] the] only American carmaker that has achieved high volume production and positive cashflow in the past 100 years."
EV Bubble
Musk could view this as a typical shade-throwing of his company's competitors, but he has a point. CNBC reports that Rivian will achieve less than $1million in sales in its third quarter 2021 despite its huge valuation. In its history, the startup has never earned any revenue. Yahoo Finance claims that the startup has not sold a single vehicle since its inception.
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Despite its high valuation, it does show the popularity and investor confidence in electric vehicles as the future of transportation. Although many believe it is a bubble, many others think it was overpriced after its public debut. The company is now stronger than ever, more than a decade after its initial public offering.
Only time will tell if Rivian is worth all the hype. CNBC reports that Rivian has 55,400 preorders of its R1S SUV, R1T pickup truck and contracts to build 100,000 electric vans by 2030 for Amazon.
Tesla just opened its Supercharging Stations for EVs from Non-Tesla Customers
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