Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Sparks

Tesla’s and Rivian’s Year-End Sales Are Messy

Meanwhile, China’s BYD has taken the lead in the global EV market.

A Rivian showroom.
Heatmap Illustration/Getty Images

How is the electric car industry doing? It depends on how you ask the question and who you ask it of.

Two leading U.S. companies — one a startup turned stalwart, the other still trying to secure itself a foothold in the market — reported their production and sales figures for the final three months of 2023. The behemoth Tesla delivered 484,507, besting expectations, according to Bloomberg. Rivian, the newcomer, delivered 13,972 cars over the same time period, missing estimates by a hair. The stock market response tells the rest of the story: Rivian shares were down around 10% in morning trading Tuesday, while Tesla shares are basically flat.

While the more-than-30-times difference is scale is obvious, the two companies’ numbers serve as snapshots of both the promise and peril of auto electrification as we roll into 2024. EVs are a real business, in which Tesla is a large but no longer dominant player. Elon Musk’s company has slipped into the number two slot behind China’s BYD. Rivian, meanwhile, is not just competing with Tesla to sell electric vehicles in the United States, but also with legacy automakers who have ramped up their electric vehicle businesses to the tune of about 10% of the American car market.

For Tesla, everything now is about scale — how it can pump out as many (increasingly competitively priced) cars to snare the average car buyer’s dollar. Rivian is at a different stage of its evolution, more reminiscent of the Tesla of more than a decade ago. The company still loses a staggering amount of money on every car it sells (although that figure is narrowing) and competes in a defined sector that Tesla has notably declined to directly play in: full-size luxury trucks and SUVs. And on another worrying note, while Rivian’s full-year production numbers came in more than 3,000 vehicles over its own guidance, its fourth quarter deliveries were short of the third quarter’s 15,564 deliveries.

While the challenge for Tesla is to sell as many cars as it can, the challenge for Rivian is to navigate the most dangerous part of a new car company’s growth — not the early days of using investor money to develop a new vehicle, but the next stage, where you have an actual car to sell but you have to figure out a way to make money doing it.

Editor’s note: This article has been updated to correct the difference in scale between Tesla and Rivian deliveries. We regret the error.

Green

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Sparks

Gargantuan Solar Project in Nevada Appears to Be Moving Forward

The Esmeralda 7 project is another sign that Trump’s solar freeze is over.

Solar panels.
Heatmap Illustration/Getty Images

The Esmeralda 7 solar project, a collection of proposed solar farms and batteries that would encompass tens of thousands of acres of federal public lands in western Nevada, appears to be moving towards the end of its federal permitting process.

The farms developed by NextEra, Invenergy, Arevia, ConnectGen, and others together would add up to 6,200 megawatts of solar generation capacity, making it the largest solar project in already solar-rich Nevada.

Keep reading...Show less
Blue
Sparks

Trump Tries to Kill New York’s Empire Wind Project

For the first time, his administration targets an offshore wind project already under construction.

Wind turbines.
Heatmap Illustration/Getty Images

The Trump administration will try to stop work on Empire Wind, an offshore wind project by Equinor south of Long Island that was going through active construction, Interior Secretary Doug Burgum posted to X on Wednesday.

Burgum announced that he directed the Bureau of Ocean Energy Management to “halt all construction activities on the Empire Wind Project until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis.”

Keep reading...Show less
Sparks

Republicans Asked For an Offshore Wind Exposé. They Got a Letdown Instead.

“NOAA Fisheries does not anticipate any death or serious injury to whales from offshore wind related actions.”

Offshore wind.
Heatmap Illustration/Getty Images

A group of Republican lawmakers were hoping a new report released Monday would give them fresh ammunition in their fight against offshore wind development. Instead, they got … pretty much nothing. But they’re milking it anyway.

The report in question originated with a spate of whale deaths in early 2023. Though the deaths had no known connection to the nascent industry, they fueled a GOP campaign to shut down the renewable energy revolution that was taking place up and down the East Coast. New Jersey Congressman Chris Smith joined with three of his colleagues to solicit the Government Accountability Office to launch an investigation into the impacts of offshore wind on the environment, maritime safety, military operations, commercial fishing, and other concerns.

Keep reading...Show less
Yellow