Elon Musk taunts Tesla rival Rivian after its blockbuster market debut

Tesla Motors CEO Elon Musk speaks to the media next to its Product S.

Nora Tam | South China Morning Article | Getty Visuals

Tesla CEO Elon Musk said large manufacturing and split-even funds flow will be the true check for rival carmaker Rivian, which had a blockbuster IPO this week and now has a marketplace benefit of more than $100 billion.

“There have been hundreds of automotive startups, equally electric powered and combustion, but Tesla is [the] only American carmaker to get to high quantity output & optimistic cash movement in earlier 100 many years,” Musk mentioned in a tweet Thursday.

He extra, “I hope they are [Rivian] in a position to obtain higher manufacturing and breakeven income movement. That is the accurate take a look at.”

Rivian, which did not straight away reply to a CNBC ask for for remark on Musk’s tweets, has under no circumstances recorded earnings and it expects fewer than $1 million in income for the 3rd quarter.

It states it has 55,400 preorders for its R1S SUV and R1T pickup truck and a agreement to establish 100,000 electrical vans with Amazon by 2030.

But trusting Rivian to assemble the automobiles and provide them profitably signifies a enormous gamble for traders who are now valuing the corporation greater than regular automobile giants Ford and General Motors.

Regardless of the lack of income, Rivian lifted all-around $12 billion in its industry debut Wednesday, producing the original public giving the major in the earth this yr. The IPO also created Rivian the 2nd most important car maker in the U.S. guiding Tesla.

Soon after its first two times of trading in 2010, Tesla had a marketplace cap of just additional than $2 billion. Meanwhile, R.J. Scaringe, CEO of Rivian, was worth that much on his personal soon after his company’s 2nd day on the community marketplace.

Rivian shares popped 57% in their first two days on the Nasdaq. Scaringe, who established Rivian in 2009, owns 17.6 million shares, valued at $2.2 billion, dependent on Thursday’s closing stock selling price of $122.99. The shares had been up a lot more than 3% in premarket trading Friday.

“We started pondering about the truck, SUV, and crossover segments as they offered a substantial prospect for us to display how a cleanse sheet, know-how-centered automobile could eliminate prolonged accepted compromises,” Scaringe wrote in the firm’s IPO prospectus.

“We preferred to set up our model by delivering a mixture of effectiveness, on-road performance, off-road capability, useful utility, and solution refinement that simply did not exist in the industry.”

Rivian has poached many previous Tesla workers, which includes crucial engineers who aided to create the Tesla Model 3.

It is not the initial time Musk has thrown shade at Rivian. Past month he tweeted “prototypes are trivial as opposed to scaling output and supply chain.” 

— Additional reporting by CNBC’s Ari Levy.