Rivian CEO RJ Scaringe on new AI tech, autonomous driving and more

Autonomous Driving Technology & Strategy - Rivian is developing its own chip for autonomous driving (AV) and artificial intelligence, a multi-year process requiring significant capital and a capable team [2][3][4] - The decision to vertically control hardware at the chip level aims to build a more efficient system and achieve higher performance at an affordable cost [4] - Rivian is focusing R&D spending on self-driving/autonomy, considering it the biggest spend category [7] - Rivian is demonstrating point-to-point full self-driving capability as a first step, with plans for future growth [8] - Rivian is aiming for level four autonomy, which would allow vehicles to drive empty without a driver [11][13] - Rivian is initially focused on personal level four vehicles, given that 99% of miles driven in the United States are in personally owned vehicles, but is open to exploring ride-sharing applications [11][12] Vehicle Development & Market Positioning - Rivian is launching the R2, a lower-priced vehicle starting at $45,000 [8] - Rivian emphasizes the importance of leading technology in lower-priced vehicles like R2 and R3 [9] - The R1S is the most popular premium electric vehicle in the United States due to its technology, brand positioning, and product features [9] Market Perception & Financial Considerations - Morgan Stanley questions Rivian's ability to keep up with the hype cycle regarding autonomous vehicles and whether it has sufficient capital for continued investments [5] - Rivian focuses on the long-term horizon, building technology for high levels of self-driving, including the hardware platform, data architecture, and data flywheel [6][7]