by Stephen Rivers
- RJ Scaringe says EV demand is hurt by high prices and low choice.
- Rivian plans to close the gap with its upcoming $45,000 R2 SUV.
- CEO argues U.S. buyers deserve far more sub-$50k EV choices.
It’s no secret that electric vehicles still carry a steeper price tag than their gas-powered counterparts, and a recent report from COX Automotive puts that gap into sharper focus. In November, the average new car cost $49,814, while the average electric vehicle rang in at $58,638.
Now, Rivian CEO RJ Scaringe is calling out this price discrepancy, along with the lack of variety in the USA, as one of the two main reasons behind the lackluster demand for all-electric vehicles.
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Speaking at Fortune’s Brainstorm AI conference, Scaringe argued that America doesn’t offer anywhere near the variety that buyers in Europe and China enjoy. He especially hit on price point as the reason that EV adoption in the U.S. sits at just 8 percent.
He went as far as to call it a “shocking lack of choice,” while claiming that American buyers have “well under five great choices” near the average new-car price.
Somewhat surprisingly, he cited Tesla as the automaker with the only truly compelling EVs under $50,000. The Model Y is available for under $50,000, and the Model 3 starts below $40,000.
“And that’s not a reflection of a healthy market with lots of choice,” Scaringe said. “If you think of it as a consumer, you have 300 different internal combustion engine choices at that price or lower, and you have maybe one highly compelling EV choice.”
Of course, the CEO didn’t miss the opportunity to tout his brand’s upcoming R2, an SUV with a target starting price of $45,000.
While American EV buyers wait for more options, rivals overseas are battling in crowded markets. Europe offers a flood of choices from Volkswagen, BMW, Mercedes, and a growing list of Chinese imports.
China itself remains the most competitive EV battleground in the world, where BYD, Nio, Xpeng, Leapmotor, and even newcomer Xiaomi are fighting tooth-and-nail for market share.
To that end, Scaringe aligned himself with the Trump administration in pushing to bring more manufacturing back to the U.S. He believes it’ll help domestic brands to scale EV supply and ultimately lower costs. Now, we wait to see if he’s right.
