In an off-topic conversation, an audience member asked Musk why Tesla had not purchased the struggling EV competitor Rivian.

Musk responded:

“I wish them the best. I hope they do well. The car industry is a very difficult industry. There’s only two US car companies that haven’t gone bankrupt, and that’s Ford and Tesla. Rivian’s going to have a hard time. It’s insanely difficult to compete in the car industry. If it were not for two technology discontinuities, one being electrification and the other being autonomy, I think Tesla could not succeed without solving both.”

ELON MUSK: "The car industry is a very difficult industry. There are only two car companies that haven't gone bankrupt: Ford and Tesla. Rivian is going to have a hard time. It's insanely difficult to compete in the car industry.

If it were not for not just one, but two… pic.twitter.com/rOgdBiGJHq

— Autism Capital (@AutismCapital) October 19, 2024

Earlier this month, Rivian announced that third-quarter vehicle deliveries missed forecasts and lowered its full-year production guidance amid continued “component shortage.”

Rivian said it delivered 10,018 vehicles in the quarter and produced 13,157 units. This missed FactSet estimates of 12,670 deliveries.

The problem with Rivian is the limited affordability options for most models—they’re out of reach for the average consumer. The company expects to launch a smaller Tesla Model Y-rivaling R2, which won’t roll out onto US highways until late 2026 or even 2027.

Last month, Morgan Stanley’s Adam Jonas downgraded names like GM, Ford, Rivian, Magna International, and Phinia amid the slowdown in the auto market.

It doesn’t help when high interest rates and elevated vehicle prices have sent new monthly car payments skyrocketing higher in several years.

In a separate note earlier this year, MS Jonas pointed out that struggling EV companies could develop partnerships with legacy automakers.

Rivian recently partnered with Volkswagen, validating the analyst’s consolidation forecast in the space.

Here’s what X users are saying about Musk’s comments last night about Rivian:

in reality, Tesla has nothing to gain by buying a company that egregiously burned through 23 *billion* un-successfully ramping a single product line

— WeirdNerd (@xIronman777) October 19, 2024

Elon actually wants others to do well! This is another thing that folks don’t immediately realize. Tesla open sourced all their patents to help folks like Rivian out. He cares about the mission and wants competition out there to drive better products for all.

— ĐOGEARMY GENERAL (@TheTeslaBull) October 19, 2024

They’ve burned so much cash. Soo soooo much cash. Prognosis for the future isn’t nearly as bright as Tesla either.

That said… why would Tesla want to buy into such a cash drain? What tech do they have that’s even useful to Tesla?

— Charlie (@CharliePryor) October 19, 2024

Shares of Rivian are down 57% this year – near record lows. Short interest is about 16.5% or about 122.3 million shares.

The price war Telsa started just a few short years ago to crush competition shows that Musk continues to win.

In the gathering of about 500 business leaders at the Detroit Economic Club on Oct. 10, Trump proposed the expansion of research and development credits, increased equipment costs for small businesses and consumer tax deductions on car loan interest to appeal to Michigan voters.

The package of incentives also includes a 100 percent tax write-off for heavy equipment in the first year and full expensing for new manufacturing investments. He also proposed doubling the equipment deduction limit for small businesses from $500,000 to $1 million. Additionally, consumers could deduct car loan interest, similar to deductions on home loan interest.

“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families,” he said, noting that many people in the audience work in the auto industry. (Related: Michigan auto workers blame Biden-Harris EV mandates for industry job cuts.)

Trump also reiterated his commitment to revisiting the U.S.-Mexico-Canada Agreement (USMCA) and promised to address perceived imbalances, particularly the growing trade deficits with Mexico and China upon taking office. The U.S. goods trade deficit with Mexico increased by 23.7 percent ($130.5 billion) in 2022, while the deficit with China rose by 8.3 percent ($382.3 billion) during the same period. The USMCA, signed into law in 2020, replaced the North American Free Trade Agreement (NAFTA).

The former president presented his proposals as a “detailed plan to save the American auto industry.” In turn, he guaranteed voters that his policies would reverse job losses, claiming: “You vote for Trump, and you will see a mass exodus of manufacturing jobs, but from Mexico to Michigan, from Shanghai to Sterling Heights.”

Trump also promises tax cuts to U.S.-based manufacturers and tariff hikes to foreign investors

On Oct. 3, Trump made similar claims about the U.S. auto-manufacturing industry, announcing his plans to encourage manufacturers to produce goods in the United States by lowering corporate tax rate from 21 percent to 15 percent for U.S.-based manufacturers and proposing a 100 percent tariff on imported automobiles. Trump also pledged to cut gasoline prices by 50 percent within one year of taking office by boosting domestic oil production and doubling electricity production, which he believes will further attract manufacturers.

Moreover, Trump pledged to enhance protections for industries essential to national interests, such as steel and automotive sectors by implementing higher tariffs, a measure that Harris has consistently criticized as a tax on the American public.

“I want tariffs, but there has to be reciprocity,” Trump said, meaning an equal trade footing between the United States and other countries. “Without that tariff, every single one of the Detroit Big Three could right now be out of business.”

When asked about Chinese automakers locating plants in Mexico in an attempt to sell electric vehicles in the U.S., Trump said: “I will impose whatever tariffs are required … 100 percent, 200 percent, whatever is necessary.”

Learn the latest news regarding President Donald Trump at Trump.news. Watch as Trump says “there won’t be an auto industry left” if Kamala wins.

This video is from the NewsClips channel on Brighteon.com.

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• Trump vows to revoke legal status and DEPORT Haitian immigrants in Springfield, Ohio if reelected in November.
• Trump’s crowdfunding campaign for those affected by Hurricane Helene raises $4 million in just a few days.
• Trump accuses Biden-Harris admin of committing ELECTION INTERFERENCE by depriving him of security.
• Trump tells supporters he plans to prosecute Google for rigging election information in favor of Kamala.
• Trump meets Zelensky, vows to negotiate peace deal “that’s good for both sides.”

Sources include:

• TheEpochTimes.com
• CNN.com
• Brighteon.com