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Rivian CEO RJ Scaringe reveals why he thinks nobody is buying electric vehicles
The CEO of an American electric vehicle manufacturer has revealed that he thinks people are not interested in buying environment-friendly vehicles because there are too few options for consumers.
Rivian CEO RJ Scaringe explained in an interview that the electric vehicle industry is growing at an extremely slow pace, especially with its supply of affordable cars.
He noted that most manufacturers have seen little success with development and launches due to a serious lack of options among cars under the price of $50,000.
'If you want to spend less than $50,000 for an EV, I'd say there's a very, very small number of great products,' Scaringe told The Verge.
He went on to say that the already tiny market has been completely saturated by Elon Musk's Tesla cars - particularly by the Model 3 and Model Y.
Rivian CEO RJ Scaringe explained in an interview most manufacturers have seen little success with development and launch due to a serious lack of options among cars under the price of $50,000
'If you want to spend less than $50,000 for an EV, I'd say there's a very, very small number of great products,' Scaringe said
While Scaringe calls both of the models 'highly compelling, great products', he states that in an effort to boost buying, companies competing with Tesla have replicated the feel of their competitor's cars to the point that the newer vehicles are 'almost identical' to Musk's.
Due to the lack of variety, the CEO said customers have chosen the most likable brand and are unable to experiment with their choices.
'Maybe they wanted something that was a little bit bigger, but they got something that was more like the Model Y.
'Maybe they didn't love the Tesla look, but it's the best product, so they took the Model Y.'
Recently, Rivian announced it will be launching its R3X electric SUV before its base model.
Recently, Rivian announced it will be launching its R3X electric SUV before its base model
Prices of the SUV start at $45,000, and they come with Rivian’s new 4695 cylindrical battery cells.
The R3's wheelbase measures five inches shorter than the R2's and is expected to arrive sometime in 2026.
Tesla's Model Y is currently the world's best-selling vehicle and the Model 3 sedan comes in a close second.
However, the lack of variety in its supply is only one of the EV car industry's problems it has to contend with.
This week, Tesla announced a drop in its profits by 45 percent in the second quarter of the year as Americans' demand for electric vehicles slows.
Tesla's Model Y is currently the world's best-selling vehicle
In the face of falling interest in EVs, Elon Musk's company had been forced to offer discounts and cut prices to lure in buyers - piling pressure on profit margins.
It comes after the electric car manufacturer had a significant number of unsold vehicles on its books at the end of the first quarter of the year.
The company's global deliveries fell 6.5 percent in the first half of the year as American's demand for EVs has continued to soften.
However, Tesla said it was on track to roll out a cheaper EV, said to cost around $25,000, by early 2025 - which analysts say will boost sales.
Tesla's Model 3, which is the second best selling electric car, seen on display at their store in Tokyo
The smaller Tesla is set to be called the Model 2.
After rumors earlier this year claimed it had been cancelled, Musk is now vowing to have it ready within a year.
That marks an acceleration from its previous target of the second quarter of next year.
'Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025,' Tesla said in its Q2 earnings report.
The Texas-based company reported profits of $1.48 billion in the three months to June 30.