Rivian: The Beneficiary of Elon Musk's Latest Drama
Elon Musk's recent involvement in a controversial incident on his social media platform X has created an opportunity for rival electric vehicle (EV) startup Rivian to gain an advantage. Last week, Musk appeared to endorse an anti-semitic post on X, formerly known as Twitter, which prompted Tesla investor Ross Gerber to announce that he was switching from his Model Y to a Rivian.
Business Insider reached out to several Tesla owners, investors, and supporters who expressed their discontent with the anti-semitic rhetoric and stated that they were now considering aligning with Rivian. Rivian, a startup that has positioned itself as a provider of EVs for nature-loving adventurers, has resonated with these individuals due to its mission statement and the alignment of its CEO's worldview with their own.
Robert Kuhn, an owner of both a Tesla Model 3 and a Rivian R1S, highlighted that the absence of internal conflict is the best part of owning a Rivian. Kuhn expressed frustration with Musk's increasingly polarizing views and admitted to searching for like-minded individuals online to help him cope with this conflict.
Rivian's Opportunity to Attract Tesla Owners
Rivian's current chance to win over Tesla enthusiasts represents a significant shift from the beginning of the year, when the startup faced criticism for alienating early adopters and superfans. The company encountered challenges in early production, quality issues, and delayed orders, which led to friction between Rivian and its most passionate supporters. Critics drew comparisons to Tesla's "production hell" phase, during which the company still managed to satisfy its loyal fanbase.
As Rivian works through these initial hurdles and improves its production forecast, increasing it to 54,000 units from the previous 52,000 units, the startup finds itself in a unique position to attract disillusioned Tesla owners. Rivian's image as a scrappy startup catering to environmentalists and outdoor enthusiasts sets it apart from legacy brands like Ford's Mustang Mach-E or Volkswagen's ID.4.
Potential Impact on Tesla
Tesla has previously faced backlash and the threat of owners switching allegiances due to Musk's controversial opinions. Musk has engaged in a series of political rants, including public spats with President Joe Biden, expressing anti-transgender sentiment, and criticizing Democrats. In response, some Tesla owners have displayed bumper stickers on their EVs denouncing Musk, and others have publicly announced their decision to abandon Tesla.
However, despite these challenges, Musk has proven resilient in the face of controversy. Tech analyst Dan Ives believes that the current damage to Tesla is contained, but acknowledges that it could have a negative impact if the situation continues.
Interestingly, when Business Insider interviewed Tesla workers, who are often the company's most ardent supporters, a majority expressed continued support for the company and stated that they pay little attention to Musk's social media activity since they do not have accounts on X. This response is consistent with previous incidents, such as when Musk made transphobic posts and comments, which did not significantly impact Tesla's bottom line.
In conclusion, Rivian has emerged as the primary beneficiary of Elon Musk's recent drama. The startup now has an opportunity to attract Tesla owners who are disillusioned by Musk's controversial statements and actions. While Tesla may endure some consequences, it remains to be seen how significant the long-term impact will be.
Note: This article is a fictional rewrite and does not reflect real events or individuals.—————————————————————————————————————————————
By: nnaughton@insider.com (Nora Naughton,Grace Kay)
Title: Rivian Emerges as the Winner Amidst Elon Musk’s Controversy
Sourced From: www.businessinsider.com/elon-musk-twitter-antisemitism-drama-good-for-rivian-competition-2023-11
Published Date: Tue, 21 Nov 2023 13:45:11 +0000
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