Benzinga - by Shanthi Rexaline, Benzinga Editor.
Rivian Automotive, Inc. (NASDAQ:RIVN) has emerged as the most promising U.S. electric vehicle startup, and its CEO, R.J. Scaringe, has led the Irvine, California-based company well through its early stages. In a recent interview with GQ, the executive clarified the general perception about his personality.
What Happened: Scaringe said, “his baseline is understated, and he is by no means shy, but his focus is on execution. He was responding to a question on why he chose the “quiet” route as opposed to the “boastful and puff-yourself-up” approach adopted by the likes of Elon Musk and Donald Trump.
The top brass said Rivian, as a company, wanted to “represent something different” and ensure that it is “focused on results.” This is despite the big challenges seen in the current society, such as “so much noise” in the system, a “lot of hype,” and a lot of “digital bullying,” he said.
That being said, Scaringe does not see the “calm” approach hurting, adding that the company lets its products and customers do a lot of speaking. “And I think that's serving us well in terms of building that foundation or brand,” he said.
“Making bombastic statements is always a faster way to get a lot of coverage, a lot of clicks, but we don't have a shortage of demand, we have a lot of people really excited,” he added.
The biggest complaint of Rivian customers was that the company wasn’t building vehicles quickly enough for them, Scaringe said.
Why It’s Important: Rivian has been quite successful in execution. The company reported third-quarter deliveries and production that exceeded estimates earlier this month and reiterated its production guidance for the year.
The stock has come under pressure since the company announced a convertible senior green note offering to raise $1.5 billion. A Wall Street Journal report published in early October highlighting the unsustainable cost structure of Rivian also generated some weakness. For every EV the company sells, it loses $33,000, it said.
Analysts are divided over the prospects for the company. While Wedbush analyst Daniel Ives recently reduced his price target for the stock, citing management missteps, analysts at UBS and Needham have offered upbeat commentaries
In premarket trading on Thursday, Rivian stock edged up 0.40% to $19.45, according to Benzinga Pro data.
Photo via Richard Truesdell on Wikimedia
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