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Rivian is progressing toward profitability, says CEO

Credit: CNBC | Squawk Box

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Rivian is still losing a lot of money for each car that it sells, though the Amazon-backed automaker’s CEO recently noted that this was quickly changing as the company ramps up production of its R1T pickup.

In a CNBC Squawk Box interview at the automaker’s Normal, Illinois production facility on Tuesday, Rivian CEO RJ Scaringe said that the company sees a “very clear staircase” toward becoming profitable after the company recently beat Q3 delivery estimates.

Although the electric truck and SUV maker was still losing $32,594 per vehicle as of the second quarter, the figure represents a steep dropoff from the past few quarters. Scaringe seems confident this trend will continue, and he says that demand for Rivian’s products is strong.

Credit: CNBC’s Squawk Box

“That is improving quarter over quarter, so we’re seeing significant progress,” Scaringe said in the interview with the manufacturing plant seen behind him. “And what we’re going to see as we go forward is a very clear staircase or step, set of steps, that get us to profitability as a business.”

“And the ramp of our production plant is really foundational and key for that,” Scaringe added.

Scaringe said that the company is also comfortable with having maintained a balanced budget sheet, which he expects to continue ahead of plans to begin producing the R1S at scale. The company earlier this year raised its production guidance following a strong Q2 earnings report.

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The statements come just after Rivian began offering its R1S Max Pack battery, offering 410 miles of range, according to the Environmental Protection Agency (EPA). It also comes after Scaringe was recently asked about his feelings on the forthcoming Tesla Cybertruck, a question that was reiterated in the Tuesday CNBC interview.

Scaringe echoed recent thoughts about the need for variety in the market, emphasizing that he thinks the Tesla pickup will have a limited amount of overlap with the market of R1T consumers. Instead, he notes that “variety in all segments is necessary for mass-scale electrification.”

Notably, Tesla didn’t have its first full year of profitability until 2021, even after producing and selling its cars for several years. CEO Elon Musk and other executives have regularly talked about the difficulty in scaling production to achieve profitability over the years, not unlike how Scaringe described the process this week.

You can watch CNBC’s full conversation with Rivian CEO RJ Scaringe below.


What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Starlink rival Amazon’s Project Kuiper invests $20M in Indonesia

Amazon’s Project Kuiper eyes $90M in Indonesia by 2035. With Starlink already active, who will win the race for rural connectivity? 

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(Credit: Amazon)

Starlink rival Amazon’s Project Kuiper plans to invest $20 million in Indonesia. Similar to SpaceX’s Starlink internet services, Project Kuiper is Amazon’s low earth orbit (LEO) connection service.

The initial investment will go toward building six gateway stations in the country as Amazon prepares to start Kuiper operations. Amazon plans to invest up to $90 million in Project Kuiper in Indonesia by 2035. The company aims to expand infrastructure and expand internet access in various regions of the country.

Indonesia’s Minister of Communication and Digital Application, Meutya V. Hafid, supported Amazon’s Project Kuiper.

“We want to ensure that every citizen, regardless of location, has equal access to digital technology. With the support of investment and innovation from the private sector, we can accelerate digital transformation and create greater opportunities for the community,” Meutya said.

Amazon has already applied for operational permits in Indonesia for Project Kuiper. The company is in the middle of processing telecommunications licenses and satellite leasing rights. Amazon Kuiper is also seeking to receive a Business Identification Number (NIB) to comply with Indonesia’s latest regulations on operations by foreign companies.

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“We understand that connectivity is still a challenge in many remote areas. Therefore, we want to work with the government and local partners to provide wider internet access for the people of Indonesia,” said the Global Head of Licensing and International Regulatory Affairs at Amazon Project Kuiper, Gonzalo de Dios.

Besides Indonesia, Amazon’s Project Kuiper is also competing with SpaceX’s Starlink in the United Kingdom. As of September 2024, Amazon was reportedly close to receiving a license to start Project Kuiper operations in the UK.

SpaceX’s Starlink launched in Indonesia last year. Elon Musk visited Indonesian President Joko Widodo during Starlink’s debut in the Southeast Asian country.

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SpaceX is in talks with another potential Starlink partner in India

Vodafone explores SpaceX Starlink partnership to boost rural internet in India! Rivals Bharti Airtel & Jio are already on board.

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(Credit: SpaceX)

SpaceX is in talks with another potential Starlink partner in India: Vodafone Idea Ltd. The Indian telecom company has not confirmed a partnership with SpaceX to offer Starlink internet services to its customers.

“We are in exploratory talks with various Satcom providers, including Starlink,” commented Vodafone.

Vodafone Idea’s share price was up by 4.93% on Wednesday after news spread that the telecom company was talking with SpaceX about Starlink internet services. However, Vodafone clarified that its talks with SpaceX are a routine business strategy to continue enhancing the quality of its services and expand its telecommunication offerings.

Vodafone is talking with multiple Satcom providers at the moment, not just SpaceX. The company’s Chief Technology Officer, Jagbir Singh, noted that satellite services could help Vodafone expand its fixed and mobile networks to areas that traditional infrastructure can not reach. He added that the telecom company aims to offer fixed wireless broadband in rural areas and small towns.

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Two of Vodafone’s rivals in India have already inked deals with SpaceX to offer Starlink services, namely Bharti Airtel and Jio Platforms.

Despite the agreements with Bharti Airtel and Jio Platforms, SpaceX’s Starlink has not received regulatory approval to operate in India. As of November 2024, Starlink India had only one box to check in order to receive approval. It needs to fully comply with the Indian government’s security regulations, specifically related to data storage.

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Tesla attacks deemed a ‘federal crime’ by FBI after Las Vegas fire

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Credit: Patrick Bean | X

Tesla attacks have been deemed a federal crime by the FBI’s Las Vegas Field Office after several Tesla vehicles were shot at and set on fire in Sin City.

“To those who might think that something like this is justifiable or potentially even admirable, we want you to know this is a federal crime,” commented Special Agent Spencer Evans, who is in charge of the FBI’s Las Vegas Field Office.

Surveillance footage from the Las Vegas Tesla attack revealed a person dressed in black clothing shooting at the electric cars and then setting them on fire with Molotov cocktails. One Molotov cocktail, which failed to explode, was found inside a Tesla vehicle and is currently being examined as evidence.

Fortunately, no one sustained any injuries in the Las Vegas Tesla attack. The fire department that responded to the fire was able to extinguish the fires before they could reach the Tesla batteries.

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According to Assistant Sheriff Dori Koren from the Las Vegas Metropolitan Police Department, several 911 calls were made at around 2:45 am. The calls reported a fire at a Tesla facility.

“Officers discovered several vehicles on fire as well as the word ‘Resist’ spray-painted on the front doors of the business,” Asst. Sheriff Koren told CNN.

The Tesla Las Vegas fire is the second case under FBI investigation. The FBI Seattle Field Office is investigating Tesla attacks in their area after March 11, when six Tesla Cybertrucks were spray-painted with swastikas and profanity.

Tesla attacks across the United States have become more common and are often tied to Elon Musk’s political activities. While the attacks are meant to hurt Tesla, the company, it has actually hurt people and other car owners more. A few non-Tesla cars have also been damaged in the attacks due to their proximity.

“You’re not hurting Elon, I already purchased the truck. You’re hurting people that work for a living, and that’s extremely wrong. You want to make a political statement? Go and protest in front of dealerships; that’s fine. That’s your right. But to vandalize people’s property with hate symbols?” commented one Jewish Tesla owner, whose Cybertruck was marked with a Swastika.

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