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| Elon Musk mocks Tesla's Rivian rival |
Elon Musk, Tesla's CEO, said the high production and cash flow breakout are a real test for rival automaker Rivian. The company launched a large-scale initial public offering this week and has a market capitalization of more than $100 billion.
Musk added in a tweet: There are already hundreds of startups in the automotive sector, whether it's in the energy sector or the combustion sector. However, Tesla is the only American automaker to have achieved significant production and positive cash flow over the past 100 years.
I hope they can achieve high productivity and balanced cash flow. This is the real test. Refers to the Rivian Company.
Rivian has never announced its sales and expects third-quarter sales to be less than $1 million. The company said its R1S and R1T truck reservations total 55,400 and signed a contract with Amazon to produce 100,000 electric trucks by 2030.
However, Rivian is believed to be able to inexpensively assemble and ship cars, which is a big bet for investors who believe the company's market value is higher than that of traditional auto giants Ford and General Motors.
Despite the lack of revenue, Rivian raised nearly $12 billion when it entered the market. This makes this year's IPO the largest initial public offering in the world. The IPO also made Rivian the second largest automaker in the United States after Tesla.
After its first two trading days in 2010, Tesla's market cap crossed $2 billion.
Meanwhile, Rivian's CEO single-handedly owns $2.2 billion in stock after his company went public on day two.
This was after his revolutionary appearance in the market
Rivian's stock price rose 57% in the first two days of its listing on Nasdaq. The CEO founded the company in 2009 and owns approximately 17.6 million shares worth $2.2 billion.
“We started thinking about trucks, SUVs and crossover parts because it gave us a great opportunity to show how clean vehicles and technology-driven swaps can be accepted for so long,” the company’s CEO wrote in Rivian’s IPO prospectus.
He added, “We want to strengthen our brand by providing on-road efficiency, off-road capability and functionality, and improving products not available in the market.
Rivian attracted several former Tesla employees, including the chief engineer who helped build the Model 3.
It is reported that this is not the first time that Musk has mocked Levian. He tweeted last month: Compared to production and supply chain expansion, prototype design is unimportant. With these issues resolved, achieving a positive gross profit will be the next nightmare. Operating a second production line for new cars before the first production line is successful will diversify resources and increase the likelihood of failure.