Rivian CEO RJ Scaringe believes Tesla’s market share decline is due to the limited variety in its lineup. In an interview with The Verge’s Decoder show, Scaringe highlighted that while Tesla’s Model Y and Model 3 are popular, they’ve “fairly saturated” the market. He pointed out that for those looking to spend under $50,000 on an EV, there are very few appealing options.
Tesla’s Model Y was the best-selling car globally last year, but the company’s U.S. market share fell below 50% for the first time this month. Tesla also reported a 4.8% sales drop and a 45% profit decline in Q2. Scaringe criticized the lack of diversity in the EV market, contrasting it with gas-powered vehicles, and assured that Rivian’s upcoming R2 model will offer unique features rather than copying the Model Y.
Meanwhile, Rivian recently received a $5 billion investment from Volkswagen, boosting its shares by 50%.