Tesla Analyst Says Rivian Potential Survivor As Elon Musk Warns Of Tough 12 Months For Auto Industry

Tesla, Inc. TSLA CEO Elon Musk repeated his dire warning about the economy in an interview with CNBC's David Faber on Tuesday.

What Happened: Raising Fed rates is like break pedal on the economy, Musk said, adding that higher interest rates would make everything costlier. He reiterated his view that the Fed is acting with latency, relying on old data while making interest rate decisions.

The billionaire also said the going will get tougher for players across the auto industry over the next 12 months, although expressing confidence that Tesla will likely get through it.

Commenting on the statement, Deepwater Asset Management's Gene Munster said Rivian Automotive, Inc. RIVN would also survive.

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Why It's Important: Among the U.S. electric vehicle startups, Rivian stands a cut above the rest. As this new crop of companies faces difficulty in ramping up production, Irvine, California-based Rivian recently reported first-quarter results that were slightly ahead of expectations and maintained its production guidance for 2023.

CEO R.J. Scaringe recently suggested that Rivian will likely resist any price cuts and instead look to raise the prices of its flagship models — the R1T electric pickup truck and the R1S electric SUV. Features and functionalities of these vehicles can justify the price premium, he said.

Price Action: Rivian shares closed Tuesday's session down 2.68%, at $13.08, but rose 0.23% to $13.11 in after-hours trading, according to Benzinga Pro data.

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