TechThursday: The Rivian Uprising

Rivian has emerged as a strong contender in the US electric vehicle (EV) truck market. However, Tesla, often regarded as the brainchild of Elon Musk’s marketing genius, has consistently outpaced Rivian. While marketing has certainly played a role, it's more accurate to say Tesla simply had a head start. Musk and his team were the underdogs who defied skepticism and became a formidable force, much like Ronaldo in football—excuse the pun.

Elon Musk set out to change the world, and his unwavering belief in himself came long before the world believed in him. He demonstrated this by investing his own money as an earlier investor, then to CEO and taking significant risks along the way. Ofcourse, Tesla's journey has not been without challenges. The company has faced backlash on employee relations, car quality, after-sales service, and software glitches. These hiccups are almost inevitable in such an ambitious venture, and what Musk has accomplished remains undeniably impressive. It would be unfair not to acknowledge that from behind my keyboard.

When Rivian entered the scene in 2009, their approach was markedly different. Rivian focused on creating a practical and impressive product without feeling the need to prove anything to the masses. Despite this, competing in the small EV market share against a giant like Tesla, with its unconventional marketing strategies, has been tough. Rivian has yet to post a quarterly profit, reporting a net loss of over $1.4 billion (€1.31 billion) in the first three months of 2024.

Despite these financial setbacks, there is hope on the horizon for Rivian. Volkswagen is planning to invest $5 billion in a joint venture with Rivian to develop electric vehicle technology. This partnership aims to leverage Rivian's software to better compete with Tesla.

The competition is heating up beyond just VW and Rivian. Croatian automaker Rimac Automobili is entering the robotaxi market with its new service, Verne, set to launch in 2026. This development is exciting news for investors, tech enthusiasts, and car lovers alike.

Monopolies are rarely beneficial for any market. The beauty of competition lies in its ability to drive businesses to either reduce prices or improve their products and services to outperform their rivals. This dynamic not only fosters innovation but also ensures consumers receive the best possible value.