Written by Samuel O’Brient | Edited by Cláudio Afonso
Electric vehicle maker Rivian is intent on forging its own path, despite a complicated industry outlook. Earlier this week, RJ Scaringe, CEO of the popular EV startup stated that his company does not plan on licensing Tesla’s full-self driving (FSD) technology.
However, Scaringe did provide detailed context on the state of the EV-market and why he believes that Rivian will benefit from current trends.
He also discussed the company’s plans for further reducing manufacturing costs in the near future.
At the 12th Annual Morgan Stanley Laguna Conference, Scaringe took the stage to address Rivian’s recent progress and future plans. He noted that the company has faced its share of difficulties over the past year, specifically how supply chain problems have negatively impacted its production.
But the CEO also made it clear that when it comes to the broader industry, he isn’t concerned about Rivian’s future. In fact, he sees his company as well positioned to benefit from the recent EV pullback exhibited by larger automakers.
“What we’re witnessing is companies that we’re planning to transition [to EVs] sooner, are now dramatically pulling back,” he stated.
“I think that’s bad for the world, but I think it’s actually on a comparative basis, it’s actually good for Rivian, and that there will be a relatively small number of true pure play focused companies, of course, Tesla being the existing leader, but ourselves being there as well. And so I’m surprised at how quickly large and common OEMs have pulled back,” the chief executive added.
The list of companies scaling back their EV production includes Ford and Volvo. Last month, Ford said it was scrapping plans for a three-row fully electric SUV and delaying the launch of an electric pickup truck.
But Scaringe clearly sees an opportunity for Rivian to continue expanding its market share as electric truck and SUV makers switch focus away from EVs.
Another key point that Scaringe highlighted is that Rivian recently purchased and disassembled a Xiaomi SU7, an electric SUV made by Chinese automaker Xiaomi to understand how it can better optimize its manufacturing endeavors and reduce costs.
He concluded that every component used in the rival company’s EVs can be up to 40% less expensive than their counterparts which are available to Western companies.
“We are really designing and engineering our supply chains to identify where we see opportunities to leverage the much lower cost basis that exists,” he says of Rivian’s future manufacturing plans.
Written by Samuel O’Brient | Edited by Cláudio Afonso