Elon Musk Warns "Car Industry Very Difficult" As "Ford & Tesla" Only "US Car Companies That Haven't Gone Bankrupt"

Elon Musk recently appeared at a town hall in Pennsylvania where he discussed the challenges of the car industry. An audience member asked Musk why Tesla had not purchased the struggling EV competitor Rivian, to which Musk responded that the car industry is very difficult and only two US car companies, Ford and Tesla, have not gone bankrupt. Musk expressed his well-wishes for Rivian but noted that the company will have a hard time competing in the industry. He attributed Tesla's success to two technology discontinuities: electrification and autonomy. Rivian recently announced that its third-quarter vehicle deliveries missed forecasts and lowered its full-year production guidance due to component shortages. The company's limited affordability options and high prices have also been a challenge. Morgan Stanley's Adam Jonas downgraded several auto companies, including Rivian, due to the slowdown in the market. Rivian has partnered with Volkswagen, which may help the company's prospects. Musk's comments sparked a discussion on social media, with some users defending his decision not to purchase Rivian due to the company's financial struggles. Shares of Rivian are down 57% this year, near record lows, while Tesla continues to lead the market.