Tesla CEO Elon Musk replied to requires his EV maker to shop for competing startup Rivian, in what can be a huge merger between two industry-leading corporations.
Musk used to be in Philadelphia on Friday evening for an tournament forward of the U.S. presidential election as he used to be making an attempt to lend a hand former U.S. President Donald Trump swing Pennsylvania. The forestall is certainly one of a number of Musk has deliberate within the Keystone State.
The development, whilst extra keen on politics, used to be additionally met with questions on Tesla, Musk’s electrical automobile corporate.
One attendee who used to be there to invite Musk a query driven the CEO on why Tesla had no longer sought to shop for Rivian, a competing automaker that has a forged shopper base, sturdy merchandise, and an leading edge CEO working the corporate however a shaky monetary platform.
Musk stated:
“I want them the most productive. I am hoping they do smartly. The auto {industry} is an overly tough {industry}. There’s simplest two U.S. automobile corporations that haven’t long gone bankrupt, and that’s Ford and Tesla. Rivian’s going to have a troublesome time. It’s insanely tough to compete within the automobile {industry}. If it weren’t for 2 era discontinuities, one being electrification and the opposite being autonomy, I believe Tesla may no longer prevail with out fixing each.”
Rivian has controlled to make it a number of years and is about to roll out its subsequent technology of goods with a brand new platform that may convey prices down for it and shoppers, in addition to streamline the producing procedure.
Elon Musk used to be requested this night why @Tesla hasn’t purchased Rivian:
“I want them the most productive. I am hoping they do smartly. The auto {industry} is an overly tough {industry}. There’s simplest two U.S. automobile corporations that haven’t long gone bankrupt and that’s Ford and Tesla. Rivian’s going to have a troublesome time.… percent.twitter.com/yzgSlKkpTs
— Sawyer Merritt (@SawyerMerritt) October 19, 2024
On the other hand, it’s feeling the rigors of beginning an EV corporate and not using a rather unending quantity of economic backing, like Lucid with the Saudi PIF.
It had buyers like Ford and Amazon, however the ones partnerships ended or turned into non-exclusive.
Even if it stays in a state of affairs the place it may possibly construct automobiles and make bigger merchandise, it has but to make a benefit at the automobiles it builds for patrons, one thing that took Tesla a number of years to reach.
Festival is just right for the marketplace, as smartly, and Rivian is lately construction a automobile platform that caters to another shopper base than Tesla. Rivian’s automobiles, whilst all-electric like Tesla’s, are extra aimed at the outside and tenting.
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Elon Musk responds to requires Tesla to shop for Rivian
