Rivian's RJ Scaringe believes that the lack of cheap electric cars under DKK 350,000 gives Tesla too much free rein. Cheaper electric cars are simply too bad.
Rivian CEO RJ Scaringe believes Tesla is dominating the market on the wrong foot, citing price and the lack of affordable electric cars.
According to him, this gives Tesla an unnecessarily large market share.
The electric car market is constantly evolving. However, one thing has remained the same for a long time. Tesla has a solid leading position, although they have faced adversity recently.
According to Rivian CEO RJ Scaringe, this dominance is not just due to brand loyalty. It's more about the lack of compelling alternatives. This is especially true for buyers looking at electric cars under 350,000 kroner.
At that price, it is difficult to find electric cars. At least some that are worth owning. Especially if the price is to be under 350,000 kroner. RJ Scaringe highlights the limited selection in that price segment.
That's why Tesla has had a very large market share for a long time. In fact, Tesla has 50 percent of the market, and that's a problem. Scaringe sees it as a sign that drivers in that segment have very few real alternatives.
Rivian's cheaper R2 and R3 models
To significantly increase sales of electric cars, more choices are needed, says RJ Scaringe. The share of electric cars must increase from the current 8 percent to 15 and 20 percent, because they are ultimately the only thing drivers have to buy.
Choice is not just about more car brands with electric cars. It's also about different styles and designs. Different features and car types are just as important to the selection.
A wider and more varied selection across the automotive industry is the way forward. This increases the chance that customers will find an electric car that suits their needs. Customers can then more easily choose cars with combustion engines.
Rivian, like Tesla in its time, has chosen a specific strategy. They started by launching more expensive vehicles. Now they are moving towards more affordable models.
Rivian's upcoming R2 and R3 models are expected to land below the price limit of 350,000 kroner. This could change the market significantly.
Several car manufacturers are also joining the fight for customers. Chinese Firefly, for example, will significantly undercut the upcoming Volkswagen ID.1 on price. Read more about it here .
The future of the electric car market and the competition
Consumers will soon have real electric cars to choose from, Scaringe emphasized in an interview with Fox Business .
He pointed out that a larger selection is key if the electric car is to eliminate gasoline and diesel cars.
More opportunities will drive the industry forward. This will increase the share of electric cars in total car sales. However, this requires that the cars meet buyers where they are.
In the past, electric car buyers were often willing to pay a premium. They may also have accepted compromises on certain features. Regular customers are now looking for affordable prices and practical solutions.
Recognizability also plays a role for mainstream customers. Rivian's focus on cars under 350,000 kroner could help shift the balance. It could bring more first-time buyers of electric cars into the market.
RJ Scaringe's comments reflect a growing belief in the industry that the market needs variety and lower prices to accelerate. If that doesn't happen, the electric car can and will struggle.
