Rivian CEO RJ Scaringe knew his company would inevitably be compared to Tesla, and for good reason. However, he detailed in a recent podcast appearance the one thing he did that was necessary to avoid being on the same track as Tesla.
It is important to know how Tesla originally got its start. It made the Roadster and priced it to sell to the rich and famous – a cool $98,950. This money would essentially be used as a fundraiser for future vehicle projects, like the Model S and Model X, which would eventually lead to the Model 3 and Model Y.
The strategy led to the company being forced to navigate through some very tough financial times, but it worked.
On the Grit Podcast, which Scaringe appeared on earlier this week, he discussed the strategy and why he made a “very intentional” move to avoid it despite it being a good way to gather capital.
Scaringe called Tesla “very inspirational,” commending the company for its leadership and prowess as an EV superpower. However, he knew it was important to establish a different story for his company. Tesla’s path is not the only one needed for success:
“…a logical place to start is build a sports car, use it to build the brand, then following the sports car, follow with more mass market vehicles, and that was, of course, how Tesla’s strategy played out, and it worked, you know, wonderfully, well for them. You know, we were starting in a similar logic space to say, ‘build a sports car,’ and I realized somebody’s done that already, and they’ve done it well, with Tesla. So to pivot to a completely different type of product, you know, experience, vehicle topology, was a very intentional effort to also create a new story for not only us as a company or as a brand but, importantly, help shift mindsets around what sustainable transportation can look like.”
It’s safe to say there is plenty of respect in this mindset. While it would still have been difficult to pull off, there is something to be said in the fact that Scaringe wanted a different path for Rivian, a different story to tell, and its own struggles to go through.
You can watch the podcast below:
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