Tesla Cybertruck set to challenge Rivian in head-to-head competition, debunking Rivian CEO’s claims.
The upcoming launch of the Tesla Cybertruck will put Rivian to the test.
Rivian, a California-based manufacturer of electric pickups, SUVs, and vans, gained immense popularity by beating major traditional automakers like General Motors, Ford, and Dodge to become the first to market with an electric pickup in 2021.
Their vehicles are highly sought after, with increasing production and delivery numbers in the third quarter. Additionally, Rivian experienced the highest growth rate of any car manufacturer in California during the first half of 2023, according to data from the California New Car Dealers Association (CNCDA).
However, industry experts predict that the introduction of the Tesla Cybertruck will affect Rivian’s success. According to Edmunds, the high level of interest in the Cybertruck will inevitably impact Rivian’s market presence.
Direct Competition
Rivian CEO RJ Scaringe recently stated that the Cybertruck will not directly compete with Rivian’s R1T pickup and R1S SUV.
Scaringe explained during the Code 2023 conference that there is minimal overlap between the customer bases of the two companies.
Ivan Drury, the director of insights at Edmunds, weighed in on this statement.
“While this may currently be true, it is primarily due to the Cybertruck’s limited visibility and consumer awareness caused by production delays,” Drury stated via email.
Drury further revealed that the Tesla Model Y is the second most cross-shopped vehicle with Rivian’s offerings on Edmunds, excluding comparisons between different brands. He anticipates that once the Cybertruck is available, it will become the top cross-shopped vehicle on the platform.
Damon Bell, Senior Research Editor at Cars.com, agreed that Rivian underestimates the competition.
“There is likely more overlap than RJ Scaringe suggests,” Bell expressed.
According to Bell, both companies are disruptors in the industry and their vehicles are perceived as highly innovative compared to offerings from established rivals.
Pricing and Impact
Price is expected to play a significant role in customers’ choice between Rivian and Tesla.
The Rivian R1T pickup starts at $73,000 and can exceed $90,000, while the R1S SUV typically costs several thousand dollars more than a similarly-equipped R1T.
(Rivian has announced plans to introduce their R2 platform in 2026, which is expected to significantly reduce prices with a starting point as low as $40,000.)
In 2019, Tesla initially announced the following pricing for the Cybertruck:
- Single Motor RWD with 250+ miles of range: $39,900
- Dual Motor AWD with 300+ miles of range: $49,900
- Tri Motor AWD with 500+ miles of range: $69,900
Even if the actual pricing of the Cybertruck upon release is higher, such as around $50,000, the significant price difference could still impact Rivian’s market position.
Edmunds’ Drury believes that selling expensive EVs to a limited group of elite buyers might have worked in the past. However, the market has evolved.
“Sticking to the upper end of what most consumers can afford limits the potential for widespread adoption of these vehicles,” he said.
“While targeting affluent consumers may have provided brand visibility and production flexibility, this strategy may have been more suitable during the early stages of EV adoption, rather than the current era where EVs are transitioning to broader market appeal,” added Drury.
Rivian R1S SUV.
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