The electric vehicle maker celebrated its chief executive’s accolade on social media and on its official website.

Why RJ Scaringe Won

Newsweek highlighted that Rivian is one of the few electric car makers in the market today that actually turned a profit. This was an extremely challenging endeavor for Rivian, especially as the company had to outfit its Normal, Il plant during the height of the pandemic. 

Rivian has proven to be as tough as its off-road-capable electric vehicles. It dug deep to launch the R1T and R1S, it secured a deal with Amazon for its electric delivery vans, it unveiled its next-generation vehicles like the R2, R3, and R3X, and it even signed a $5.8 billion joint venture with Volkswagen Group. This year, a subsidiary of the company also received a $6.57 billion loan from the federal government to finance the development and construction of its Georgia plant, which is expected to be capable of mass manufacturing the R2.

“Strategic decisions that resulted in a gross profit of $170 million in the fourth quarter of 2024 and the maturing business model of the Rivian brand in a BEV-adverse environment are why RJ Scaringe is Newsweek’s 2025 Executive Disruptor of the Year,” Newsweek wrote.

What the CEO Says

CEO RJ Scaringe noted that the honor really belongs to the company’s employees, who have endured numerous hardships over the years just to help Rivian mature and survive. As per the electric truck maker, its CEO’s award is a reflection of the vision, grit, and teamwork that powers everything the company does. 

“This honor truly belongs to the entire incredible team of disruptors at Rivian. Every step forward we’ve taken—whether in the design studio, on the assembly line or in our software—has been driven by people who believe deeply in our mission. I’m grateful to Newsweek for the recognition, and even more thankful to our community for continuing to inspire us every day!” Scaringe stated.

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Rivian CEO RJ Scaringe showed some support for Tesla despite all the Elon Musk hate that has been spreading. Scaringe’s stance on all the Tesla amid the protests and vandalism starkly differs from what seems to be the popular opinion lately.

RJ Scaringe attended the South by Southwest (SXSW) event in Austin earlier this week. The Rivian CEO briefly talked about Tesla and its current predicament.

“When we look at Tesla and other manufacturers, I think it’s incredibly important that we have [a] choice. We need Tesla to be successful, we need other manufacturers to be successful,” answered Scaringe graciously.

In the past, Scaringe has talked about the electric vehicles industry’s growth and how EV automakers need to offer different designs to help it expand. He acknowledges that Tesla started the current EV revolution and once called it a “very inspirational” company. However, the Rivian CEO also encourages EV automakers to make their own mark in this rising industry.

“If you’re a consumer that’s thinking about buying a car and you want to spend less than $50,000, there are just not that many great electric options,” Scaringe noted during his SXSW appearance.

He noted that the base Tesla Model Y is less than $50,000 but also pointed out that it might be someone’s design or brand preference. In Rivian’s case, nature lovers were attracted to the company’s designs and features.

“I was sort of fortunate [to attract buyers who like nature]. I love the outdoors, active sports, and things like that,” Scaringe said. “But there’s also a strategy to realize that if we can build a product that enables and inspires people to be outdoors, it’s going to help people to want to be active participants in sustainability.”

Rivian signed a 2-year headlining sponsorship agreement with SXSW. It has planned plenty of fun activities and exhibits for the annual festival, including an Electric Roadhouse space inspired by Texas Roadhouse.

Rivian R1T and R1S demo drives are available at SXSW until the end of the event on March 15, 2025. The Rivian R2 will also be on display during the festival.

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It is important to know how Tesla originally got its start. It made the Roadster and priced it to sell to the rich and famous – a cool $98,950. This money would essentially be used as a fundraiser for future vehicle projects, like the Model S and Model X, which would eventually lead to the Model 3 and Model Y.

The strategy led to the company being forced to navigate through some very tough financial times, but it worked.

On the Grit Podcast, which Scaringe appeared on earlier this week, he discussed the strategy and why he made a “very intentional” move to avoid it despite it being a good way to gather capital.

Scaringe called Tesla “very inspirational,” commending the company for its leadership and prowess as an EV superpower. However, he knew it was important to establish a different story for his company. Tesla’s path is not the only one needed for success:

“…a logical place to start is build a sports car, use it to build the brand, then following the sports car, follow with more mass market vehicles, and that was, of course, how Tesla’s strategy played out, and it worked, you know, wonderfully, well for them. You know, we were starting in a similar logic space to say, ‘build a sports car,’ and I realized somebody’s done that already, and they’ve done it well, with Tesla. So to pivot to a completely different type of product, you know, experience, vehicle topology, was a very intentional effort to also create a new story for not only us as a company or as a brand but, importantly, help shift mindsets around what sustainable transportation can look like.”

It’s safe to say there is plenty of respect in this mindset. While it would still have been difficult to pull off, there is something to be said in the fact that Scaringe wanted a different path for Rivian, a different story to tell, and its own struggles to go through.

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However, Scaringe believes too many companies are attempting to replicate the all-electric crossover, giving a similar design, similar dimensions, worse performance, and a non-competitive price, and it is costing those companies an opportunity to set themselves apart and deliver a great product.

Scaringe is a Tesla fan and admitted in the interview that he believes the Model Y is a great vehicle. “I think it’s an awesome car. I’ve owned one before,” he said in the interview. However, he believes the EV market is so saturated with Model Y competitors that have tried to replicate the car on every level that it is potentially preventing the sector as a whole from growing.

“What I would say is the primary reason for the slowdown is there is an extreme, truly extreme, lack of choice,” Scaringe said. “If you want to spend less than $50,000 for an EV, I’d say there is a very, very small number of great products. Tesla Model 3 and Model Y are highly compelling, great products, but they don’t have a lot of competition.”

Scaringe believes Tesla competitors would be better off developing a completely new product from scratch instead of working on building a car that is basically a cookie cutter of the Model Y.

Tesla launches range upgrades for the Model Y RWD

“The products that are trying to compete with them more often than not, without being specific, have unfortunately replicated the package, the shape, the overall proportion of the vehicle, such that they’re not a Tesla-branded vehicle, but the side view centerline of the vehicle is almost identical to a Model Y,” Scaringe said. “The seating package is within millimeters of a Model Y, the performance is slightly worse than a Model Y.”

This is creating an influx and a saturation of what is essentially the same car. Unfortunately for competitors, consumers are going to lean toward the Tesla brand, as sales statistics have shown. The charging infrastructure, price, and overall reputation of Tesla as an EV maker will push car buyers into their arms.

If consumers are torn, Scaringe believes Tesla will get the nod.

“Maybe they wanted a true SUV and got a very car-like crossover with the Model Y. Maybe they wanted something that was a little bit bigger, but they got something that was more like the Model Y. Maybe they didn’t love the Tesla look, but it’s the best product, so they took the Model Y.”

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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According to a regulatory filing and internal memos cited in a report from Automotive News, all Rivian product teams will now report directly to Scaringe, including workers in areas like software, autonomy and design. Previous chief product development officer Nick Kalayjian will step back from the role, though he’s expected to remain a key part of Rivian’s propulsion and vehicle tech units, remaining an adviser through 2024.

“It’s a big year for product for Rivian, so RJ is doubling down on the introduction of our new technologies in 2024 and the design and development of R2,” a Rivian spokesperson told Reuters. “Nick will be advising through 2024.”

According to Rivian, the automaker’s product reporting structure will feature categories, including software, autonomy, design, programs, electrical, vehicle and propulsion. One email seen by Reuters also noted that Scaringe would oversee both reliability and quality at the company, as part of a larger attempt to work closely with product development.

“I want to stay as close to the development of our products as possible,” Scaringe wrote in the email.

“My desire to make changes aligns perfectly with RJ’s desire to redirect more of his time and energy toward product leadership,” Kalayjian wrote to colleagues in a memo seen by Bloomberg.

Rivian currently sells its first-generation vehicles, the R1T pickup and the R1S SUV, both of which are built at its factory in Normal, Illinois. The automaker is also building a $5 billion manufacturing plant outside of Atlanta, Georgia, to build its next-gen vehicles, the R2 line. One executive recently said the generation’s mid-size SUV would be priced between $40,000 and $60,000.

Although the automaker is still losing money on each of its cars sold, Scaringe pointed out last month that Rivian is progressing toward profitability as its losses per vehicle are steadily declining with each quarter.

Earlier this month, Rivian also launched its electric delivery van (EDV) to customers beyond Amazon, with small-scale fleet orders expected to begin in 2024 before ramping up in 2025.

Rivian CEO RJ Scaringe talks Tesla Cybertruck vs. R1T

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In a CNBC Squawk Box interview at the automaker’s Normal, Illinois production facility on Tuesday, Rivian CEO RJ Scaringe said that the company sees a “very clear staircase” toward becoming profitable after the company recently beat Q3 delivery estimates.

Although the electric truck and SUV maker was still losing $32,594 per vehicle as of the second quarter, the figure represents a steep dropoff from the past few quarters. Scaringe seems confident this trend will continue, and he says that demand for Rivian’s products is strong.

Credit: CNBC’s Squawk Box

“That is improving quarter over quarter, so we’re seeing significant progress,” Scaringe said in the interview with the manufacturing plant seen behind him. “And what we’re going to see as we go forward is a very clear staircase or step, set of steps, that get us to profitability as a business.”

“And the ramp of our production plant is really foundational and key for that,” Scaringe added.

Scaringe said that the company is also comfortable with having maintained a balanced budget sheet, which he expects to continue ahead of plans to begin producing the R1S at scale. The company earlier this year raised its production guidance following a strong Q2 earnings report.

The statements come just after Rivian began offering its R1S Max Pack battery, offering 410 miles of range, according to the Environmental Protection Agency (EPA). It also comes after Scaringe was recently asked about his feelings on the forthcoming Tesla Cybertruck, a question that was reiterated in the Tuesday CNBC interview.

Scaringe echoed recent thoughts about the need for variety in the market, emphasizing that he thinks the Tesla pickup will have a limited amount of overlap with the market of R1T consumers. Instead, he notes that “variety in all segments is necessary for mass-scale electrification.”

Notably, Tesla didn’t have its first full year of profitability until 2021, even after producing and selling its cars for several years. CEO Elon Musk and other executives have regularly talked about the difficulty in scaling production to achieve profitability over the years, not unlike how Scaringe described the process this week.

You can watch CNBC’s full conversation with Rivian CEO RJ Scaringe below.

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Rivian has technically been the only name in electric vehicles that cater to the outdoorsman and the adventurer, and its brand has sought to give a rugged option to those who also want sustainability in a vehicle.

The R1T and R1S have been Rivian’s two EVs that have launched so far under the company name, and they have been early momentum builders for the company, which is working toward profitability by increasing production and scaling.

The EV pickup sector is continuing to grow and become more competitive, especially as legacy companies like Ford and GM have launched their own electric pickups over the past two years, which have helped the companies gain their own notoriety in the EV playing field.

While Ford has tasted more success with the F-150 Lightning than GM has with the HUMMER EV, both are early iterations on already-existing gas pickups that have both been widely successful for each respective brand.

However, Tesla is coming to the market later this year with the Cybertruck, which is likely the most anticipated company release in perhaps the history of the automaker.

Scaringe, who is well aware of Tesla’s prowess in the sector, commended the Cybertruck during an interview with The Verge, stating that he thinks “it’s great that a product like that exists in the world.”

 

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However, Scaringe does not necessarily think that there will be “a lot of overlap” in terms of customers that will go for a Cybertruck over an R1T. He believes both pickups cater to a certain market, and they will both perform well for the customers who need them.

“Customers want lots of different things,” Scaringe said, which is extremely true. Despite the Cybertruck and R1T both being pickups, one will cater to one crowd, while the other may be more sought after by a different customer base.

Variety in the market is exactly what Tesla went after with the Cybertruck. Early designs were somewhat traditional, and that’s exactly what Tesla wanted to avoid with its introductory pickup.

“We realized that pickup trucks basically haven’t changed in their form or their manufacturing process in eighty years,” Tesla Chief Designer Franz von Holzhausen said in the recently released Elon Musk biography.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Scaringe’s Rivian stock purchase approximately totaled $1.05 million. He now owns 169,175 shares directly, 4,337,997 Rivian stock through a trust, and 4,596 by LLC, reported Street Insider. 

Rivian shares are down by 76% year-to-date. Ford offloaded about 8 million Rivian shares, totaling $214 million earlier this month. The legacy automaker offloaded another 7 million shares worth $188.42 million recently. 

Rivian has openly expressed supply chain challenges affecting its production lines. In its Q1 2022 Shareholders Letter, the company noted that it is experiencing logistics costs caused by supply chain challenges. Rivian stated that supply chain constraints would be a limiting factor to its production. 

Despite supply constraints, Rivian seems optimistic about the future. It reaffirmed its 2022 annual production target of 25,000 units. Rivian appears to be adjusting to the challenges it faces. It has updated its reservation and configuration steps to adapt to increasing costs. Now, new customers can reserve their vehicles, but can only save specific configurations when their build slot’s date is closer. 

“This change ensures that when a build is configured, the customer is choosing from the latest features, packages, and pricing. This new reservation system equips us to better navigate managing a large demand backlog with inflation uncertainties, planned content changes, and enhancements to ensure customers are offered the latest product offerings,” wrote Rivian in its Letter. 

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