\n
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/07\/GettyImages-2059210757-e1721843912238.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
Tesla\u2019s market share is sinking, and Rivian CEO RJ Scaringe thinks it\u2019s because consumers are disinterested in the lack of variety.<\/p>\n
In an interview with The Verge<\/em>\u2019s Decoder show<\/a>, Scaringe said that while Tesla\u2019s Model Y and Model 3 are excellent, they\u2019ve also \u201cfairly saturated\u201d the market\u2014and buyers want more choices.<\/p>\n \u201cIf you want to spend less than $50,000 for an EV, I\u2019d say there\u2019s a very, very small number of great products,\u201d he told Decoder.<\/p>\n Tesla\u2019s Model Y was the top-selling car model<\/a> in the world last year, according to a report by JATO Dynamics, but Elon Musk\u2019s EV maker fell under 50% market share<\/a> in the U.S. for the first time earlier this month. The company\u2019s second quarter revealed a 4.8% decrease in sales for the company and a 45% collapse in profit<\/a> for the quarter ended in June.<\/p>\n Scaringe said that some unnamed EV companies have tried to replicate the look and feel of the Model Y because of its global success, rather than giving consumers diverse choices as they do in the gas-powered vehicle market. While he gives the Model Y credit for its quality, he said Rivian\u2019s upcoming model, the R2, will be no copycat.<\/p>\n \u201cThat\u2019s not to say Model Y isn\u2019t a great car,\u201d Scaringe said. \u201cI think it\u2019s an awesome car. I\u2019ve owned one before. It\u2019s just to say that I think the world needs more variety.\u201d<\/p>\n Late last month, Rivian secured a $5 billion lifeline from Volkswagen<\/a> that sent its shares up 50% after having sunk to record lows earlier this year.\u00a0<\/p>\n While in many ways Scaringe\u2019s company is similar to Tesla, the chief executive said in a thinly veiled slight<\/a> to Musk last month that he was letting the products do the talking instead of making bombastic statements as Musk has made about Rivian in the past<\/a>.\u00a0<\/p>\n The overall EV market has continued to grow despite Tesla\u2019s recent sales slide. EV sales in the U.S. grew by 11.3% year-over-year in the second quarter, according to a report by Cox Automotive<\/a>. And estimates by Kelley Blue Book put EVs at about 8% of all new vehicles sold in the U.S. in the second quarter, up from 7.2% a year ago.<\/p>\n But while several new models are soon to be released, including Rivian\u2019s R2<\/a>, the number of different electric vehicle models sold in the U.S. has stayed mostly constant\u2014and some big automakers have scaled back their plans.<\/p>\n Earlier this year, Musk canceled a long-awaited low-cost EV and pivoted the company to focus on robo-taxis<\/a>. American carmakers Ford and GM have both also stepped back from ambitious EV plans recently.<\/p>\n<\/div>\n CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\nRecommended Newsletter:<\/strong><\/p>\n