Rivian CEO RJ Scaringe said Tesla’s continued dominance in the U.S. electric vehicle market stems less from brand loyalty and more from the lack of affordable alternatives, particularly for consumers seeking EVs priced under $50,000.
In an interview with Fox Business, Scaringe pointed to the scarcity of compelling options in that price range, which he believes has helped Tesla maintain a market share exceeding 50%. “If you’re looking at buying an electric vehicle for under $50,000 today, there’s really very, very few highly compelling choices,” Scaringe said. “And for that reason, you’ve seen Tesla with very significant market share for a long time now… a reflection of limited grade choices.”
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Rivian plans to address this gap with its upcoming R2 and R3 models, expected to launch below the $50,000 threshold. The company has so far followed a path similar to Tesla’s early years—starting with higher-priced vehicles before moving into more accessible segments. Scaringe said that expanding consumer choice is vital to driving broader EV adoption, arguing that a more diverse vehicle lineup across brands and body types is necessary to boost electric cars’ share of total auto sales.
“What we need to see to go from 8% to 15 to 20 to eventually 100% of vehicle sales being electric, [is] a lot of choice,” he said, emphasizing that choice also means variety in design, features, and performance, not just more manufacturers entering the space.
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Scaringe also addressed trade-related challenges facing EV makers, particularly in light of tariffs implemented under the Trump administration. Although Rivian manufactures its vehicles in the United States, including core components such as batteries and motors, its supply chain remains global and multilayered.
“One of the things with automotive is the supply chain is so complex,” Scaringe said. “We have hundreds of suppliers providing parts… not only a set of suppliers that supply to us, but those suppliers have suppliers, and then in turn, those suppliers have suppliers.” He added that while Rivian is working to adjust its sourcing in response to tariffs, “they’re difficult to change.”
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The Rivian chief also noted concern over trade restrictions on rare earth elements, particularly those refined in China. While these materials are mined in various regions, China’s dominance in processing creates potential bottlenecks. “That’s a real challenge for electric vehicles,” Scaringe said. “We do rely on a supply chain that… has a number of components that come from other countries.”
Rivian’s expansion into the sub-$50,000 EV segment could introduce competitive pressure to Tesla’s grip on the market and may broaden the appeal of electric vehicles to a larger segment of cost-sensitive consumers.