(Bloomberg) – Elon Musk doesn’t seem exactly optimistic about Rivian Automotive Inc.’s prospects, even after rival electric vehicle maker’s IP0 blockbuster.
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Tesla Inc.’s chief executive said he hopes Rivian can increase production rates and break even cash flow. But in a tweet Thursday he also noted that of hundreds of startups, “Tesla is the only American automaker to achieve high-volume production and positive cash flow in the past 100 years.”
Rivian, led by RJ Scaringe, made the largest initial public offering worldwide this year on Wednesday. After a 22% gain on Thursday, the company is already worth $ 107 billion, making it the fifth largest carmaker by market capitalization.
The company is building battery-powered electric delivery vans for Amazon, as well as a pickup truck marketed for outdoor enthusiasts. Rivian lost nearly $ 1 billion in the first half of the year and estimates annual production will reach 150,000 vehicles at its main plant by the end of 2023.
Rivan hired dozens of former Tesla employees, including key engineers who were involved in the launch of Tesla’s Model 3.
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Musk has already reflected on Rivian, stating last month that “prototypes are trivial compared to downsizing production and supply chain.”
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