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When RJ Scaringe first founded Rivian in 2009 a year after the Tesla<\/a> Roadster hit markets, he came to an important conclusion that would fundamentally alter the path of the EV startup.<\/p>\n For Rivian to succeed, it needed its own distinct identity and investment story that differentiated it from Elon Musk\u2019s carmaker.\u00a0<\/p>\n \u201cOne of the things so important to me with Rivian is to make sure we weren\u2019t covering the same ground as Tesla,\u201d he told the\u00a0Grit podcast<\/a>\u00a0hosted by venture capital firm Kleiner Perkins this week.<\/p>\n A diehard gearhead who, growing up, owned a Porsche 928 engine even before he had a driver\u2019s license, Scaringe was dead set on starting his own car company after college.\u00a0<\/p>\n The natural thing to do, in his mind, was to create enthusiasm for a new brand by launching an electric sports car that other gearheads would fall in love with and then use that success to move into the mass market.<\/p>\n \u201cThat was of course how Tesla\u2019s\u00a0strategy<\/a>\u00a0played out and it worked wonderfully well for them,\u201d he said. \u201cWe were starting in a similar logic space, and I realized somebody\u2019s done that already, and done that well with Tesla. So the pivot to a completely different product and experience was a very intentional effort to create a new story.\u201d\u00a0<\/p>\n Two years later, in 2011, he shifted to developing a sporty electric coupe to focus on the pickup truck and SUV segment. <\/p>\n But this then came with its complications when seeking to raise capital, he would later find out.\u00a0<\/p>\n \u201cThe kinds of questions we would get [from early investors] looking back now it\u2019s comical, but people were like \u2018what if they get wet?\u2019, \u2018can they go off road?\u2019, and \u2018what if it hits a really large bump?\u2019,\u201d explained.\u00a0<\/p>\n Much like Musk, Scaringe struggled for years to keep the company afloat, always looking to deliver on a milestone target to unlock the next tranche of investor capital that would keep the lights on for the next three or four months.<\/p>\n That was in part due to the unique challenges of the car industry, where heavy upfront capital is needed before the first vehicle can be built. These high barriers to entry for new startups contrast sharply with the asset-light business model of digital platform companies other tech investors are used to.<\/p>\n \u201cDifferent than typical software startups\u2014where you can have an idea, build a crude version of it, show there\u2019s demand, then scale the idea\u2014the first dollar of revenue in a business like this takes many billions of dollars of spend,\u201d Scaringe explained on the podcast.<\/p>\n Scaringe said he later found it far\u00a0easier<\/a>\u00a0to raise\u00a0risk capital<\/a>,\u00a0starting around 2017 and 2018\u2014coincidentally the time Tesla proved with its Model 3 that there is broad appeal for EVs.<\/p>\n Shortly thereafter both Amazon<\/a> and Ford invested money in the EV startup. In 2021, Scaringe even timed his IPO for Rivian perfectly,\u00a0raising money<\/a>\u00a0at the peak of the\u00a0EV hype<\/a> just when he began delivering his first vehicles.<\/p>\n Yet his company is by no means out of the woods yet. Earlier this year, Scaringe took a gamble by shutting down its Illinois plant to retool assembly and onboard entirely new suppliers in a bid to lower the production cost of the R1T truck and its sibling SUV, the R1S.\u00a0<\/p>\n As a result, Rivian predicted it would see zero growth<\/a> this year as a result of the shutdown, restart and subsequent production ramp.\u00a0<\/p>\n In addition to nabbing a\u00a0crucial investment<\/a>\u00a0from\u00a0ailing<\/a>\u00a0carmaker Volkswagen<\/a>, Scaringe is getting help from an unlikely source: Musk himself. The Tesla CEO has been alienating many of his progressive car buyers, actively\u00a0engaged<\/a>\u00a0with Kremlin-backed social media accounts, and provided\u00a0full throated support<\/a>\u00a0to Donald Trump, warning civilization as a whole is\u00a0at risk<\/a>\u00a0if the climate change denier is not elected.<\/p>\n By comparison, Scaringe barely ever posts anything on X<\/a> and when he does talk, he warns about the need to reduce carbon emissions by transitioning away from fossil fuels.\u00a0<\/p>\n This\u00a0continued focus on the mission<\/a>\u00a0has won the Rivian founder a number of\u00a0deserting Tesla<\/a>\u00a0customers in market like California, a key stronghold for Musk but one where he\u2019s losing ground. Scaringe\u2019s automaker is now the fastest growing car brand<\/a> in an economy that nominally\u2014without adjusting for purchasing power\u2014is the size of a Germany or Japan in dollar terms.<\/p>\n Still, Scaringe didn\u2019t look to rub it in Musk\u2019s nose about it.\u00a0<\/p>\n \u201cTesla\u2019s been absolutely inspiring,\u201d he said on the podcast.<\/p>\n<\/div>\n\nModel 3\u2019s success opens new doors<\/h2>\n
Fastest growing car brand in California<\/h2>\n
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