Elon Musk: "The US automotive industry is very difficult", only Ford and Tesla have not gone bankrupt

Facing the fierce competition in the US automotive industry, the startup electric vehicle company Rivian Automotive, once known as "Tesla's strong competitor," is facing increasingly difficult circumstances and has recently been caught up in rumors of being acquired by Tesla.

During an event in Pennsylvania on October 19th local time, when asked why Tesla did not acquire Rivian, Tesla CEO Elon Musk stated that despite the intense industry competition, he hopes Rivian can succeed and overcome the difficult times. At the same time, Musk emphasized that Tesla will focus on its own business development.

Musk said, "The US automotive industry is very difficult, with only Ford and Tesla not bankrupt yet. I hope everything goes well for Rivian."

"I wish them all the best. I hope they do well. The automotive industry is a very difficult industry, with only two American car companies not bankrupt, Ford and Tesla. Rivian's days will be tough, as competition in the automotive industry is very difficult. If it weren't for two technological breakthroughs, one being electrification and the other being autonomous driving, I don't think Tesla would have succeeded either."

Rivian is a new electric vehicle manufacturer in the United States, having received a $5 billion investment intention from Volkswagen. However, the company has gradually fallen behind in the fierce competition in the industry, with poor financial conditions and a continuous decline in its stock price this year.

Analysis points out that Rivian's problem lies in the fact that most of the company's models are not affordable enough for the average consumer to bear. The company is expected to launch a small model R2 by the end of 2026 or 2027, aiming to compete with Tesla's Model Y.

Earlier this month, Rivian announced that its third-quarter delivery volume fell short of expectations and lowered its full-year production guidance due to "component shortages." The company delivered 10,018 vehicles in the third quarter and produced 13,157 vehicles, both below FactSet's estimated 12,670 vehicles.

Last month, Morgan Stanley analysts downgraded ratings for companies such as General Motors, Ford, Rivian, Magna International, and Phinia in the backdrop of a slowdown in the automotive market.

Rivian's stock price has fallen by 57% this year, nearing historic lows, with a short interest rate of about 16.5%, approximately 122.3 million shares.