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Bloomberg Audio Studios, podcasts, radio news.

Marja Sparrange is with us. He's of course head of the sixteen billion dollar market CAAP automaker. We're talking about Rivian. We talk about this company all the time with us at Bloomberg Tech Summit here in San Francisco, and we have Ed Ludlow, a member of our team cost of Bloomberg Technology who knows this company so well. Hey, one thing I want to start with Rja is there's a lot going on today, the bromance in the White House between Elon and Donald Trump. It seems like it's over and it's not going well.

Marja Sparrange is with us. He's of course head of the sixteen billion dollar market CAAP automaker. We're talking about Rivian. We talk about this company all the time with us at Bloomberg Tech Summit here in San Francisco, and we have Ed Ludlow, a member of our team cost of Bloomberg Technology who knows this company so well. Hey, one thing I want to start with Rja is there's a lot going on today, the bromance in the White House between Elon and Donald Trump. It seems like it's over and it's not going well.

So I'm just curious have you been able to kind of win market share or anything as a result of kind of Elon's position at DOGE And I'm just curious how it might play out here.

So I'm just curious have you been able to kind of win market share or anything as a result of kind of Elon's position at DOGE And I'm just curious how it might play out here.

Yeah, I mean I think Teslamon, Yeah, I think in general, it's the thing that's been surprised is just how politicize A lot of things have be common. So I'll let you equals become politicized. Specific brands within the electric vehicles pace to politicized, and so what we've tried to do as a brand really really focused on is to focus on what we stand for, the products, the ratch meets and and you know, there's a famous Michael Jordan quote which is we have Republicans that you know, he said, Republicans and Democrats both by Nikes. And it's the same thing with Rivians. I'll go to Rivian events. I was just in New York yesterday and yeah, there's it's such a beautiful mix of backgrounds, perspectives, cultures that are drawn to what we're building as a brand. Right and we're about to launch what we call R two, which is a lower priced vehicle starts at forty five thousand dollars and that product will even you know, broaden the aperture even more.

Yeah, I mean I think Teslamon, Yeah, I think in general, it's the thing that's been surprised is just how politicize A lot of things have be common. So I'll let you equals become politicized. Specific brands within the electric vehicles pace to politicized, and so what we've tried to do as a brand really really focused on is to focus on what we stand for, the products, the ratch meets and and you know, there's a famous Michael Jordan quote which is we have Republicans that you know, he said, Republicans and Democrats both by Nikes. And it's the same thing with Rivians. I'll go to Rivian events. I was just in New York yesterday and yeah, there's it's such a beautiful mix of backgrounds, perspectives, cultures that are drawn to what we're building as a brand. Right and we're about to launch what we call R two, which is a lower priced vehicle starts at forty five thousand dollars and that product will even you know, broaden the aperture even more.

And so I think what Kars asking is if there's net positive effect for you from this environment on sales and pre orders.

And so I think what Kars asking is if there's net positive effect for you from this environment on sales and pre orders.

I think that's what she was asking.

I think that's what she was asking.

I think you were benefiting from this.

I think you were benefiting from this.

Environment to test some movement. Have you benefited from it?

Environment to test some movement. Have you benefited from it?

I think there are a lot of customers that are looking for a brand I want to connect with, so that we're seeing that for sure.

I think there are a lot of customers that are looking for a brand I want to connect with, so that we're seeing that for sure.

Sort of on that and thinking about the politics of this rare earth. I mean, you and the team have been really clear that you've been working to educate the Trump administration when it comes to the complexities around processing rare earth here in the US. We did hear from the President earlier today after a call with President Chiji and Pang. He said there should no longer be any questions respecting the complexity of rare earth's products. Are you still concerned about accessibility to rare earth?

Sort of on that and thinking about the politics of this rare earth. I mean, you and the team have been really clear that you've been working to educate the Trump administration when it comes to the complexities around processing rare earth here in the US. We did hear from the President earlier today after a call with President Chiji and Pang. He said there should no longer be any questions respecting the complexity of rare earth's products. Are you still concerned about accessibility to rare earth?

Well, first, I'd say I appreciate that the administration recognizes this is an issue that's important, and I think that we've done a lot of work and smell a lot of time with the administration on this topic. I think this is perhaps one of the biggest topics surrounding you know, the trade tensions with China. Well, it's well documented that a vast majority of the world's processing for these rare earth metals happens in China. So this is something that you know, we're going to continue to be very focused on, continue to have concerns about until we start to see it really move.

Well, first, I'd say I appreciate that the administration recognizes this is an issue that's important, and I think that we've done a lot of work and smell a lot of time with the administration on this topic. I think this is perhaps one of the biggest topics surrounding you know, the trade tensions with China. Well, it's well documented that a vast majority of the world's processing for these rare earth metals happens in China. So this is something that you know, we're going to continue to be very focused on, continue to have concerns about until we start to see it really move.

What's your backup plan.

What's your backup plan.

Which we have many backup playing.

Which we have many backup playing.

You can't get access to these rare earths for some raison an extended period of time, which are essential in making evs and batteries.

You can't get access to these rare earths for some raison an extended period of time, which are essential in making evs and batteries.

What do you do? So what we've we've done, we've spent time on over the last several months, is to build alternative supply chains. But they're not they're not elegant because they're not set up for scale, and and a lot of people beyond us are also trying to build these alternative supply chains. So I think, you know, the hope is that in the short to medium term we see this open back up. And I think in the long term we're probably going to see both investment into building earth capacity outside of China and then innovation to remove rare earths from products. You know, So if you take in an electric vehicle, the reason this is so important is the motors use permanent magnets. Then permanent magnets have earth metals, you know, things like dysprosium, you know, all those things on the periodic table that you forget about there. Yeah, yeah, but those those rare battles are needed in the magnets. But you can create an electro magnet to power the rotor, you know, the rotors a spinning part of the motor. But then you've got to get power to the rotors, so that you can do it with a brush, you can do it with induction, So it's a more complex motor product, but it does remove the complexity of global trade.

What do you do? So what we've we've done, we've spent time on over the last several months, is to build alternative supply chains. But they're not they're not elegant because they're not set up for scale, and and a lot of people beyond us are also trying to build these alternative supply chains. So I think, you know, the hope is that in the short to medium term we see this open back up. And I think in the long term we're probably going to see both investment into building earth capacity outside of China and then innovation to remove rare earths from products. You know, So if you take in an electric vehicle, the reason this is so important is the motors use permanent magnets. Then permanent magnets have earth metals, you know, things like dysprosium, you know, all those things on the periodic table that you forget about there. Yeah, yeah, but those those rare battles are needed in the magnets. But you can create an electro magnet to power the rotor, you know, the rotors a spinning part of the motor. But then you've got to get power to the rotors, so that you can do it with a brush, you can do it with induction, So it's a more complex motor product, but it does remove the complexity of global trade.

Around or is that a little bit time away.

Around or is that a little bit time away.

Yeah, it's not gonna you can't flip your design over overnight. But I would say I think a lot of the arto industry is going to start finding innovative ways that are perhaps maybe be a little more expensive. That reduced the RELI.

Yeah, it's not gonna you can't flip your design over overnight. But I would say I think a lot of the arto industry is going to start finding innovative ways that are perhaps maybe be a little more expensive. That reduced the RELI.

Once somewhere people wonder how nimble you are there, Like, do you remember when we first met seven years ago with respect your suppliers really wouldn't engage with you because of scale. So if you have had to pivot a little bit because of policy, particularly for planning that are two, have you been able to get your spires to listen to you and be effect to change what's changed?

Once somewhere people wonder how nimble you are there, Like, do you remember when we first met seven years ago with respect your suppliers really wouldn't engage with you because of scale. So if you have had to pivot a little bit because of policy, particularly for planning that are two, have you been able to get your spires to listen to you and be effect to change what's changed?

I mean, yeah, we've talked about the slide. I mean our relationship was suppliers. A leverage we have with those suppliers is so much stronger today with our two and what's to come than what we had, you know in twenty nineteen or twenty twenty, even twenty eighteen. But I'd say the thing that's really helpful for us in our two is it's not as if this is a surprise we saw, you know, if you're going into summer of last year, we saw some of these tensions already rising between the United States and China, and that was as we're planning for and sourcing our two. So we contemplated and in many ways anticipated a lot of these situations we're now dealing with in terms of tariffs, in terms of trade restrictions happening. So in the medium to long term, it's we're pretty well covered. In the short to medium term, you know, things get shut off. That's really challenging. And so that's where I think the rare challenge is that if this this happens, were it's off, it just creates a lot of pressure on a very thin non China supply chain.

I mean, yeah, we've talked about the slide. I mean our relationship was suppliers. A leverage we have with those suppliers is so much stronger today with our two and what's to come than what we had, you know in twenty nineteen or twenty twenty, even twenty eighteen. But I'd say the thing that's really helpful for us in our two is it's not as if this is a surprise we saw, you know, if you're going into summer of last year, we saw some of these tensions already rising between the United States and China, and that was as we're planning for and sourcing our two. So we contemplated and in many ways anticipated a lot of these situations we're now dealing with in terms of tariffs, in terms of trade restrictions happening. So in the medium to long term, it's we're pretty well covered. In the short to medium term, you know, things get shut off. That's really challenging. And so that's where I think the rare challenge is that if this this happens, were it's off, it just creates a lot of pressure on a very thin non China supply chain.

I still think there's a lot of interest in Rivian. What I hear is there's also a lot of interest in also Chrome ability spin off. Would you consider kind of de risking yourselves a little bit by allowing outside investors to write you a check into that venture and then get you some capital, or de risk your own balance sheet in that respect.

I still think there's a lot of interest in Rivian. What I hear is there's also a lot of interest in also Chrome ability spin off. Would you consider kind of de risking yourselves a little bit by allowing outside investors to write you a check into that venture and then get you some capital, or de risk your own balance sheet in that respect.

So we spun this micromobility portion of rivine out and we actually raised outside capitals. We brought okay, we brought one hundred and five million dollars in at the.

So we spun this micromobility portion of rivine out and we actually raised outside capitals. We brought okay, we brought one hundred and five million dollars in at the.

Start of the year, which is from a CLIPS which.

Start of the year, which is from a CLIPS which.

Is from a Clipse exact right, and so it's now independently financed from Ribbune and it's you know, it's a really exciting set of products. We're going to show those products in the fall.

Is from a Clipse exact right, and so it's now independently financed from Ribbune and it's you know, it's a really exciting set of products. We're going to show those products in the fall.

But with the venture, look at even further outside capital to get going a little bit.

But with the venture, look at even further outside capital to get going a little bit.

We could, yeah, we could, but we're really happy with where it is. It's it's exciting to build a new business with the strength of all the Riview technologies and starting right.

We could, yeah, we could, but we're really happy with where it is. It's it's exciting to build a new business with the strength of all the Riview technologies and starting right.

I said thirty seconds at the end to wrap up our So with everything that's going on from the administration kind of push back, it feels like against alternative energy at EBS. Do you think it's a real setback or things will keep moving and forgive me, it's just about.

I said thirty seconds at the end to wrap up our So with everything that's going on from the administration kind of push back, it feels like against alternative energy at EBS. Do you think it's a real setback or things will keep moving and forgive me, it's just about.

The reason thirty seconds, All right, go Look, I think I think there's a lot of noise in the short term, but the end state is still really clear. The world's going to electrify. We're going to move towards sustainable, carbon neutral transportation, and the countries and the businesses that focus on the future state are the ones that are going to be participants in the long term. And so you know, we talk about this often with demonstration, which is the importance of US companies having technical leadership, production capacit around these these areas and make sure we're there.

The reason thirty seconds, All right, go Look, I think I think there's a lot of noise in the short term, but the end state is still really clear. The world's going to electrify. We're going to move towards sustainable, carbon neutral transportation, and the countries and the businesses that focus on the future state are the ones that are going to be participants in the long term. And so you know, we talk about this often with demonstration, which is the importance of US companies having technical leadership, production capacit around these these areas and make sure we're there.

We did it, Dardy, thank you so much. Great way for us to rap with this hour. Urguscreage, thank you of course at Rivian and of course our and ledlove

We did it, Dardy, thank you so much. Great way for us to rap with this hour. Urguscreage, thank you of course at Rivian and of course our and ledlove