All,
RJ and Rivian received praise from every corner. Elon and Tesla? Hatred, heavy fines, vandalism and scorn from every side.
It's been a great week!
Too much? Maybe, but I just can't help myself.
Forgive me if I celebrate Rivian's success and cheer on troubles for Elon Musk (because of AutoPilot, his defiance of any governance and his pomposity and arrogance).
Truthfully, this was going to be a column looking at the string of problems Elon is facing. I can't keep up. There are not enough days in the week to hit on every topic that catches my eye.
Plus, this has been Hydrogen Week as I shine the spotlight on the Hydrogen Economy. It's here folks! Not just for the future. Many more examples to come.
But enough about that. This is battery day, the other technology I love.
It started with a call to Chris Clonts at Automotive Engineering, trying to lock down our date for First Element's event for April 22-24-- the country's first hydrogen truck stop about which I can't stop talking.
"Did you hear the Rivian news today?" Chris asked. "Yeah, the whole world was expecting a reveal of the R2 SUV and he showed the R3 as well." He being RJ Scaringe, CEO and founder of the EV startup.
It was a surprise reveal in this day and age. Rivian's stock jumped 13 percent on the R3 news yesterday and climbed another 7 percent this morning before I started typing this column.
I immediately went to Tech Crunch, to see what was being reported. You could feel the buzz 3,000 miles away in Laguna Beach, Calif.
As customers, VIP guests and media milled into the Rivian South Coast Theater in Laguna Beach on Thursday — the Pacific Ocean crashing on the beach just a few hundred feet away — a mix of hope and excitement rippled through the arena. The occasion was the unveiling of the Rivian R2, a smaller and more affordable all-electric SUV, and a vital vehicle for the EV upstart hoping to show the world it’s here to stay.
Early supporters of Rivian, friends, and founder RJ Scaringe’s young family filled the seats of the renovated theater. The air was filled with conversations about their Rivian vehicles, exclamations and congratulations, hugs and handshakes, and discussions of their hopes for the R2.
When the Rivian R2 did arrive, it did not come alone. Scaringe had two “one more thing moments,” showing off two more electric vehicles under the next-generation R3 platform, along with updates on production and hints about “adventure” accessories that will match up with the active lifestyle branding Rivian has become famous for.
The R2, a two-row, five-seat, all-electric midsized SUV that will have more than 300 miles of range and a base price of $45,000, was the main event. The encore was the smaller R3 and the R3x performance, a compact hatchback-style EV with sporty vibes, wrote Tech Crunch's Kirsten Korosec.
Rivian will also move production of R2 from Atlanta, Georgia, -- where it is building a $5 billion plant -- to Normal, Ill. in the old Mitsubishi plant. The production move will save Rivian $2.25 billion.
Rivian's R2 SUV, starting at $45,000.
RJ Scaringe, Rivian CEO and founder, reveals the surprise star of the show -- the smaller, cheaper R3.
This generated another headline in Tech Crunch.
Rivian surprise announces the R3 hatchback, and it’s cute as hell
Calling a vehicle "cute" is the kiss of death in most circles. No guy I know wants a "cute" car. Let's call it what it is. Beautiful. Great proportions. Small, by American standards, but very interesting to look at, both from the front and rear. And it could be the affordable EV for which everyone is looking. Me included.
It reminds me of the 2004 Chevy Nomad concept car that never went into production.
But Dave Barthmuss, from our team, said it reminds him of a 1986 Dodge Omni.
Car and Driver's John Voelker said on LinkedIn that auto journalists in attendance were calling it the Lada Niva, a reference to the Russian nameplate.
What is the old cliche? Beauty is in the eye of the beholder. To each his own. I love it. Well done, Rivian. Let me know if that R3 price point is within reach for the Fosgard household. I want it right next to my Chevy Blazer.
Now, where do I start with Tesla?
How about the eco-crazies that sabotaged the Berlin gigafactory by starting a fire that did an estimated $1 billion in damages. Here's what Autoline reported earlier this week.
GERMAN ECO MILITANTS ATTACK TESLA BERLIN
A militant environmental group in Germany launched an arson attack on a power station that brought Tesla’s Berlin assembly plant to a standstill. A letter allegedly left behind by militants calling themselves the Volcano Group said, and I quote, “Tesla consumes earth, resources, people, workers and in return spits out 6,000 SUVs, killer cars and monster trucks each week.” The letter, 2,500 words long, also attacked Elon Musk. Police say they are investigating. Tesla wants to expand the plant and double the capacity to 1 million cars a year, but environmentalists have protested against the company cutting down trees, and some of them are actually camping out in the forests around the plant.
They were camping out in the woods near the plant! How stupid or, maybe, they wanted to be arrested to further dramatize their point.
This, a day after the company got hit with a $6 billion legal fee invoice..
LAWYERS WANT $6 BILLION FROM TESLA
The lawyers who helped void Elon Musk’s $56 billion pay package as too excessive, want a record legal fee from Tesla, which some might also consider excessive. Reuters reports the lawyers want $6 billion, payable in Tesla stock. They want the automaker to pay the fee because it benefited from the return of Musk’s pay package. Not surprisingly Elon blasted the lawyers and called the request “criminal” and said they did nothing but damage the EV maker. The judge overseeing the case will decide if the lawyers will get that fee. Musk was sued over his pay package in 2018 by a Tesla shareholder and in January, the Delaware judge voided his pay package.
How delicious. First, the lawyers argue on behalf of Tesla shareholders that Elon's compensation of $56 billion for 2018's salary was outrageous. They won -- at least so far. And now, Elon has to write them a check for $6 billion for taking $56 billion out of his pocket. Wouldn't you want to be a fly on the wall when and if that day happens. Tesla's bylaws are probably structured that only Elon himself can write a check that big.
Wait. There's more. Now comes news a Chinese EV price war that will negatively impact Tesla. For the week, it's stock dropped 11 percent, reaching its lowest point in nearly a year.
Don't you just feel sorry for beleagured Elon?
Nah.
FORBES PODCAST
I want to take a second to personally thank Forbes' Ed Garsten for inviting me to be his guest and for his kind words on his weekly podcast, "Tales from the Beat". Very kind of you, Ed. Have a listen, like and share please.
Ed GarstenView Ed Garsten’s profile
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Self-employed journalist, Forbes.com Senior Contributor, Integrated Media Consultant at Franco PR, Tales From the Beat Podcaster
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If you're an auto writer and don't know Scott Fosgard you've probably missed a lot of great stories managed by a true pro and a cool guy. Scott and I go was far back as when I started as CNN Detroit Bureau Chief in 1989 and worked together on a million stories through the last 35 years or so. Scott now has his own agency and is the brilliant mind behind the House of Journalists. What's that? All is revealed during our fun conversation on this week's episode of Tales From the Beat. #podcast #journalism #pradvice…see more
Master of Auto PR Scott Fosgard
Hi Scott..You were brilliant! Thank you so much for taking the time to yak with me. The podcast is now live on Spotify and elsewhere. Here's the direct link which you can share as much as you like. https://open.spotify.com/episode/5wUGoYb7s4ym5wfl7jHjQn?si=009d4c07216f4ec9 It should also be available on Apple Music, Amazon Music and iHeartRadio.
Scott