Electric vehicle (EV) stocks are down across the board today in response to Tesla’s (NASDAQ:TSLA) earnings release. And Rivian (NASDAQ:RIVN) stock is no exception. During the quarter, Tesla reported revenue of $23.35 billion and adjusted earnings per share (EPS) of 66 cents, both of which came in below analyst estimates. This marked the first time that Tesla missed on revenue and adjusted EPS since Q2 2019.
Meanwhile, CEO Elon Musk’s comments about the upcoming Cybertruck have caught the interest of RIVN stockholders. The EV leader disclosed that deliveries of the vehicle would begin on Nov. 30. Could this pose a problem for Rivian’s R1T and R1S trucks, which compete in the same market?
RIVN Stock: Tesla Discloses Cybertruck Delivery Date
No, Musk has not handed Rivian a death sentence. As the automotive industry has shown, several vehicles can exist in each vehicle sub-type and still prove successful. According to Statista, the top-selling trucks of 2022 were the Ford F-Series, the Chevrolet Silverado, and the RAM Pickup, all of which are produced by different companies. Rivian didn’t make the cut, as it was still in its early stages of sales — and still is today.
On top of that, Musk sought to temper expectations for the Cybertruck during Tesla’s earnings call. “I know that people are excited about the Cybertruck, I am too I’ve driven the car, it’s an amazing product,” said the Tesla CEO. “I do want to emphasize that there will be enormous challenges in reaching volume production with the Cybertruck and then in making a Cybertruck cash flow positive.”
Once production is in full force, the company expects to produce 250,000 Cybertrucks per year. Still, Musk noted that that would not likely happen until at least 2025. Plus, the vehicle won’t have a significant contribution cash flow positive effect until a year to 18 months from now, said Musk.
All in all, the arrival and production ramp-up of the Cybertruck is definitely a negative factor for Rivian. But the arrival of the vehicle doesn’t mean that customers will all of a sudden ditch Rivian’s trucks. History has shown that multiple companies can thrive in unison in the truck market.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
