Rivian closest to being the ‘next Tesla’: says Barclays

[Count Orlok]

“We are hard pressed to see any company in the auto landscape as the ‘next Tesla,’ as Tesla has been quite unique in its accomplishments,” Levy said. “That said, if we were to identify any of the start-up EV automakers as the closest to Tesla (vis-à-vis defining characteristics), we believe it would be Rivian. Rivian thus far has established key moats in product and technology.”

Rivian closest to being the ‘next Tesla’: Barclays

Sponsored

 

[Marchin_MTB]

“key moats”… I’ll have to try and use that in casual conversation today.

 

[mikehmb]

“key moats”… I’ll have to try and use that in casual conversation today.

It is indeed a weird phrase, but it’s something we use with startups all the time. It leads to all sorts of jokes about crocodiles and sharks, but the “tech moat” is a major point of investigation when you’re evaluating an investment.

</VC_nerd_mode>

 

[Marchin_MTB]

It is indeed a weird phrase, but it’s something we use with startups all the time. It leads to all sorts of jokes about crocodiles and sharks, but the “tech moat” is a major point of investigation when you’re evaluating an investment.

</VC_nerd_mode>

Thanks for dropping some knowledge! Learned something new.

 

[John G.]

Maybe the term harkens back to early castles that had "moats" around them to make them very formidable.

 

[Jac]

It is indeed a weird phrase, but it’s something we use with startups all the time. It leads to all sorts of jokes about crocodiles and sharks, but the “tech moat” is a major point of investigation when you’re evaluating an investment.

</VC_nerd_mode>

Yup. That old fashioned phrase, “barrier to entry,” just wasn’t cutting it any longer. ?

 

[Yellow Buddy]

Rivian closest to being the ‘next Tesla’: Barclays

I'm not sure I buy it. I'm going by Warren Buffets term of a moat: https://www.investopedia.com/ask/answers/05/economicmoat.asp

Tesla established and still has a Supercharger moat, along with the economics of scale in terms of profit margins. What is Rivian's moat?

That's not to say they haven't been impressive, but I just don't see a moat yet. They've got competition at every corner and I don't know they've done enough to say specific things are competitive advantages.

Not a popular opinion I'm sure...but my opinion nonetheless.

 

[NineElectrics]

Tesla rode a tidal wave of cheap money just before government subsidies went mainstream, with constant shady promotion by the CEO. I’m not sure we’ll ever see those factors replicated again.

 

[zipzag]

I don't see Rivian moats. I was hoping for an article that explained how Rivian is differentiated from an investors viewpoint.

Rivian is certainly in the best condition of western startups.

 

[Yellow Buddy]

Tesla rode a tidal wave of cheap money just before government subsidies went mainstream, with constant shady promotion by the CEO. I’m not sure we’ll ever see those factors replicated again.

Not to mention an automotive environment that really didn't focus on software. Tesla allowed their vehicles to be synonymous with advanced technology - even if it wasn't advanced they made it accessible, prominent, and free.

Today, everyone has a lane centering "AutoPilot" software. Remote vehicle access is widely available. GPS, streaming audio, backup cameras are mainstream - almost standard - technologies. So are big screens. Their charging network is just starting while other automakers use the same public infrastructure or in Tesla's case years ahead.

Tesla operated in an environment that really had no competitors. Rivian is operating an environment that's competing with both "disruptors" as well as stabile and established automakers, and that now includes Tesla.

If there is a moat, Rivian is currently on the other side of it...

 

[COdogman]

Rivian still has a steep hill to climb, but I agree with the general point of their article, that if you had to pick 1 EV startup that is best positioned to succeed it would probably be Rivian. "Success" won't look like what Tesla has done because they were the first and did a lot of heavy lifting. But also anyone coming behind them has different obstacles to overcome. Apples to oranges.

Sponsored