Rivian vs Tesla: Will Rivian's Truck Succeed in the Electric Market?
The comparison between Rivian and Tesla, two pioneers in the electric truck market, has been a topic of discussion for quite some time. While initial excitement and press rave reviews have surrounded the Rivian electric truck, the company's current financial troubles cast a shadow over its future. On the other hand, Tesla’s Cybertruck remains in the conceptual stage, making direct comparison challenging at this juncture.
The Rivian Electric Truck: A Viable Option
I recently purchased the Rivian electric truck, and to my surprise, I like it a lot. Unlike the Cybertruck, which is still just a photograph, the Rivian vehicle has been brought to market. This reality sets it apart and makes it possible to evaluate its performance and features, although it currently lags behind in terms of technology and production.
Starting deliveries and gaining financial backing will be crucial for Rivian's survival and success. With substantial investments, the company will be better positioned to compete with Tesla. However, catching up to Tesla's current technology and production capabilities will require at least five years, giving Tesla a significant lead of 10 years.
Competing with Tesla
While Rivian may eventually find a market, it is unlikely to directly compete with Tesla. Historically, Tesla has dominated the market with models in the 40k - 70k price range. Rivian will likely position itself in the premium/luxury SUV/truck segment, where it can sell a portion of its vehicles.
Another significant advantage Rivian has is the Amazon order for delivery vans. Rivian is already producing these vans, which Tesla does not currently offer. This unique product will make Rivian a preferred choice for corporations like the US Postal Service, assuming it has sufficient capacity to fulfill these orders.
Market Success and Future Outlook
Despite these challenges, Rivian is expected to be successful. However, it is unlikely to directly compete with Tesla. Rivian will offer vehicles in a different segment than Tesla, allowing GM to say they have an electric truck. This move will help in absorbing some of the EV credits that GM might otherwise pay to Tesla for their gas-guzzling trucks. The Rivian vehicle is a nice option, but only if GM does not sabotage the project.
Conclusion: While Rivian's truck has potential, the market competition and technological gap with Tesla mean that direct competition is unlikely. However, Rivian's unique offerings, such as the electric delivery vans, will provide it with a niche market where it can thrive.