Rivian’s CEO explains why there won’t be just one winner in the EV market

“This is such as big space. We as a planet consume 90 million new cars a year,” Scaringe said. “This, by definition, needs many successful companies building many different flavors of what a car might be.”

“They give customers lots of choices that make customers run toward these new options,” he added.

Rivian is often compared to and framed as an up-and-coming competitor gunning for the segment leader, Tesla.

But the Rivian boss posited that instead of fighting to be king of the hill, the way forward is to draw consumers in with a variety of compelling products. He believes the “extreme lack of choice” for consumers at competitive prices, especially compared to internal combustion models, has contributed to slower-than-expected EV sales growth this year.

The lack of strong options is particularly bad for those looking to spend less than $50,000, with Tesla being the only compelling choice, according to Scaringe.

“There’s not a lot of other great options, and it’s precisely why I think it’s so important that Rivian exists,” he said. “Our next product, the R2, we hope will help solve this, but we need lots of others to come into this space.”

Tesla’s current lineup includes two vehicles that start under $50,000; the compact Model 3 sedan at $39,000 and the Model Y SUV at $45,000.

Rivian launched its first consumer EVs in 2021 with the full-size R1T pickup and R1S SUV. Although highly capable, the duo is spendy. The second-generation R1s, which were introduced this Summer, carry starting prices that range from $70,000 to more than $110,000.

The R2 SUV aims to deliver the R1’s performance in a smaller, more affordable package. Its set to go on sale in 2026 and have a starting price of $45,000.

The company also unveiled an even more affordable model called the R3, but the timing and pricing for that vehicle have not yet been confirmed.