{"id":1497293,"date":"2024-10-19T19:45:00","date_gmt":"2024-10-19T23:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1497293"},"modified":"2024-10-19T19:45:00","modified_gmt":"2024-10-19T23:45:00","slug":"elon-musk-warns-car-industry-very-difficult-as-ford-tesla-only-us-car-companies-that-havent-gone-bankrupt","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/elon-musk-warns-car-industry-very-difficult-as-ford-tesla-only-us-car-companies-that-havent-gone-bankrupt\/1497293\/","title":{"rendered":"Elon Musk Warns “Car Industry Very Difficult” As “Ford & Tesla” Only “US Car Companies That Haven’t Gone Bankrupt”\u00a0"},"content":{"rendered":"

Elon Musk Warns “Car Industry Very Difficult” As “Ford & Tesla” Only “US Car Companies That Haven’t Gone Bankrupt”\u00a0<\/span><\/p>\n

\n

Elon Musk appeared at the Greater Philadelphia Expo Center in Montgomery County on Friday night for his second town hall in the battleground state of Pennsylvania. With just 16 days until the election, Musk – and\u00a0his pro-Trump America PAC – are holding\u00a0town halls statewide to support the former president.<\/p>\n

In an off-topic conversation, an audience member asked Musk why Tesla had not purchased the struggling EV competitor Rivian.\u00a0<\/p>\n

<\/a><\/p>\n

Musk responded:<\/p>\n

“I wish them the best. I hope they do well. The car industry is a very difficult industry. There’s only two US car companies that haven’t gone bankrupt, and that’s Ford and Tesla. Rivian’s going to have a hard time. It’s insanely difficult to compete in the car industry. If it were not for two technology discontinuities, one being electrification and the other being autonomy, I think Tesla could not succeed without solving both.”<\/em><\/p>\n

\ud83d\udea8ELON MUSK: “The car industry is a very difficult industry. There are only two car companies that haven’t gone bankrupt: Ford and Tesla. Rivian is going to have a hard time. It’s insanely difficult to compete in the car industry.<\/p>\n

If it were not for not just one, but two\u2026 pic.twitter.com\/rOgdBiGJHq<\/a><\/p>\n

\u2014 Autism Capital \ud83e\udde9 (@AutismCapital) October 19, 2024<\/a><\/p>\n

Earlier this month,\u00a0Rivian announced that third-quarter vehicle deliveries missed forecasts and lowered its\u00a0full-year production guidance amid continued “component shortage.”<\/p>\n

Rivian said it\u00a0delivered 10,018 vehicles in the quarter and produced 13,157 units. This missed\u00a0FactSet estimates of\u00a012,670 deliveries.\u00a0<\/p>\n

The problem with\u00a0Rivian is the limited affordability options for most models\u2014they’re out of reach for the average consumer. The company expects to launch a\u00a0smaller Tesla Model Y-rivaling R2, which won’t roll out onto US highways until late 2026 or even 2027.<\/p>\n

Last month,\u00a0Morgan Stanley’s Adam Jonas\u00a0downgraded<\/a> names like GM, Ford, Rivian, Magna International, and Phinia amid the slowdown in the auto market.\u00a0<\/p>\n

It doesn’t help when high interest rates and elevated vehicle prices have sent new monthly car payments skyrocketing higher in several years.\u00a0<\/p>\n

<\/a><\/p>\n

In a separate note earlier this year, MS\u00a0Jonas pointed out that struggling EV companies could develop partnerships with legacy automakers<\/a>.\u00a0<\/p>\n

<\/a><\/p>\n

Rivian recently partnered with Volkswagen, validating the analyst’s consolidation forecast in the space.\u00a0<\/p>\n

Here’s what X users are saying about Musk’s comments last night about Rivian:<\/p>\n

in reality, Tesla has nothing to gain by buying a company that egregiously burned through 23 *billion* un-successfully ramping a single product line<\/p>\n

\u2014 WeirdNerd (@xIronman777) October 19, 2024<\/a><\/p>\n

Elon actually wants others to do well! This is another thing that folks don\u2019t immediately realize. Tesla open sourced all their patents to help folks like Rivian out. He cares about the mission and wants competition out there to drive better products for all.<\/p>\n

\u2014 \u0110OGEARMY GENERAL (@TheTeslaBull) October 19, 2024<\/a><\/p>\n

They\u2019ve burned so much cash. Soo soooo much cash. Prognosis for the future isn\u2019t nearly as bright as Tesla either.<\/p>\n

That said\u2026 why would Tesla want to buy into such a cash drain? What tech do they have that\u2019s even useful to Tesla?<\/p>\n

\u2014 Charlie (@CharliePryor) October 19, 2024<\/a><\/p>\n

Shares of Rivian are down 57% this year – near record lows. Short interest is about 16.5% or about 122.3 million shares.\u00a0<\/p>\n

<\/a><\/p>\n

The price war Telsa started just a few short years ago to crush competition shows that Musk continues to win.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 10\/19\/2024 – 15:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/technology\/elon-musk-warns-car-industry-very-difficult-ford-tesla-only-us-car-companies-havent-gone<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Elon Musk Warns “Car Industry Very Difficult” As “Ford & Tesla” Only “US Car Companies That Haven’t Gone Bankrupt”\u00a0 Elon Musk appeared at the Greater…<\/p>\n","protected":false},"author":0,"featured_media":1497294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1497293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1497293"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1497294"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1497293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1497293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1497293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}