California-based EV maker Rivian Automotive (NASDAQ:RIVN) is not chasing after vehicle autonomy like its rival Tesla Inc. (NASDAQ:TSLA), a senior company executive said in an interview.
What Happened: "We are not necessarily chasing full-self driving, we're not chasing robotaxis," Wassym Bensaid, Chief Software Officer at Rivian, told Business Insider. "Our goal is incremental improvements to the safety and convenience for customers."
"We're not chasing a specific autonomy level because we think, philosophically, that it's really about the incremental features, whether it's safety or convenience that you can progressively add to the car," he added.
Tesla, meanwhile, unveiled its Cybercab with no pedals or steering wheel last month. The vehicle, CEO Elon Musk then said, will enter production "before 2027" and be priced below $30,000.
Musk also said during the company's third-quarter earnings call that the company expects to start a ride-hail service in Texas and California starting next year, subject to regulatory approval, with self-driving Model 3 and Model Y vehicles.
However, the vehicles might not all operate as driverless robotaxis initially but with a driver as some states demand it until the company touches certain milestones in terms of miles and hours driven, the company then said.
However, Musk also expressed confidence about the company operating driverless paid rides sometime next year.
Why It Matters: Rivian currently has two EV models in production- the R1S SUV and the R1T truck. Last month, Rivian cut its annual production forecast by as much as 18% to between 47,000 and 49,000 electric vehicles. The company cited production disruption owing to a component shortage for the revised guidance.
For the third quarter, the company delivered 10,018 EVs and produced 13,157. The company is slated to announce its third-quarter results on November 7, after market close.
Though the company started delivering EVs to customers in late 2021, it has yet to achieve profitability.
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