Rivian CEO RJ Scaringe on Friday discussed the electric vehicle market with CNBC’s Jim Cramer, saying EV automakers need to give consumers a wider variety of models to choose from.
“What I think we’re witnessing today is a lack of choice,” Scaringe said. “There’s not enough vehicles across price points and form factors to give people viable alternatives to their combustion vehicles that they’ve been buying.”
Rivian is trying to broaden its offerings with a new line of R2 vehicles, which Scaringe will be smaller and less expensive than current Rivian models. The company’s current vehicles are priced upwards of $70,000.
Consumer demand is a problem across the EV industry, with manufacturers slashing prices, offering leasing deals and significant cash rebates. Even Tesla
, one of the few profitable EV companies, cut costs last year, reducing prices of new cars by 20%. Tesla also reported an earnings miss on Wednesday, warned of slowed growth in 2024 and admitted affordability continues to be a problem for the company.
There’s a substantial federal tax break for American EVs, with some buyers eligible for $7,500 in credit. But many EVs are too expensive to qualify for the full benefit, with the price cap falling at $55,000 for cars and $80,000 for trucks. Scaringe said the R2s were developed with this tax credit in mind.
But Scaringe said he’s confident the world will eventually make a lasting shift to EVs, saying government policies will drive that change. He referenced the Biden administration’s EV initiatives, including a push to have the vehicles make up half of U.S. auto sales by 2030.
“In the long term, to me, there’s zero debate that all of our vehicles will convert to electric,” Scaringe said. “So it’s not a question of if, it’s just a question of when.”