Tesla Bull Ross Gerber Floats Rivian Acquisition Idea: 'Just Makes Sense'

A post on X by a long-time Tesla Inc. TSLA bull has sparked a conversation on growth, strategy, and consolidation in the EV space.

What Happened: On Wednesday, prominent Tesla bull and fund manager Ross Gerber shared a post on X, suggesting that the EV giant acquire its rival Rivian Automotive Inc. RIVN.

“Maybe, at some point, it just makes sense for Tesla to buy Rivian,” Gerber wrote in a brief, ambiguous post. While he didn't elaborate on what that point might be, the comment quickly sparked debate on X, with users weighing in on both the strategic logic and potential pitfalls of such a move.

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When a user commented that it doesn’t make any sense, since “Rivian has nothing proprietary that Tesla needs,” Gerber responded bluntly, saying that they have “a truck people will buy…” Taking a shot at the Tesla Cybertruck, which is currently grappling with poor sales as inventory continues to pile up.

Others, including fund manager Richard Todaro, have voiced concerns about Rivian's reliability. “I like the look of their SUVS, but Rivian SUVs have low reliability,” Todaro says, citing the company’s low score of 14 out of 100 in the Consumer Reports’ 2024 survey, flagging recurring battery and electrical issues.

Why It Matters: Despite being an ardent Tesla bull, Gerber has been critical of the company and its CEO, Elon Musk, in recent weeks.

Just last month, Gerber said that the company needed to work to separate itself from Musk, before adding that “now it might be too late,” citing the brand damage and acts of protest and violence that the company and its customers have had to endure due to Musk’s growing political involvement.

Price Action: Tesla shares were up 0.32% on Tuesday, and Rivian was down by 5.78% following the company’s first-quarter earnings release.

Rivian scores well on growth and momentum, while sporting a favorable price trend in the short, medium, and long term, but how does it compare with Tesla? Sign up for Benzinga Edge to find out.

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