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In a dynamic business environment, firms always seek to maximize their profits, but
economic conditions, industry trends, and managerial decisions can lead to different outcomes.
In this discussion, we will explore corporate groups' two economic developments and their
In this paper, we will go in-depth to compare two major players in the electric vehicle
industry, Tesla and Rivion Automotive. Tesla is a pioneering electric vehicle (EV) and clean
energy company founded by Elon Musk in 2003 (Ma et al., 2022). Known for its innovative
approaches to EVs, energy storage, and solar power, Tesla has disrupted the automotive industry
and has expanded into renewable energy solutions in turn Rivion was Founded in 2009. It gained
attention with its electric passenger vehicles, which focus on SUVs and trucks designed for off-
road adventure use Rivian is gaining traction in the EV market on and has received funding from
While both Tesla and Rivion operate in the EV market, they have different perspectives.
Tesla’s market positioning, a variety of electric vehicles, leads the way in EV technology,
manufacturing, and infrastructure (Tesla, 2021). Tesla, with its charismatic CEO Elon Musk and
its leading position in the electric car market, saw the biggest increase in revenue. Rivian, on the
other hand, gained popularity for its unique offers aimed at new but adventurous customers.
Rivian Automotive with its promising innovations is struggling with financial difficulties,
perhaps due to high start-up costs and competitive pressures (Wen, 2022).
Accounting profits include explicit costs, such as overhead, salaries, and raw materials.
This revenue minus these direct costs. Economic returns extend beyond accounting returns,
encompassing implicit costs such as opportunity costs—the sacrifices a firm makes by choosing
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one opportunity over another (Ma et al., 2022). Several factors have affected Tesla’s bottom line.
First, its new developments in EV technology have given it a larger market share. Tesla's
charging stations contribute to lower production costs and increased customer demand. Besides,
Tesla's early entry into the EV market gave the company a competitive advantage (Tesla, 2021).
Tesla’s financial returns are not only based on its accounting profits from car sales but also on
other revenues it earns from selling statutory loans to other automakers, providing energy
solutions, investing in cryptocurrencies and whatnot (Ma et al., 2022). This additional funding
References
Ma, S.-C., Xu, J.-H., & Fan, Y. (2022). Characteristics and key trends of global electric vehicle
https://ir.tesla.com/_flysystem/s3/sec/000156459021004599/tsla-10k_20201231-gen.pdf
Wen, J. (2022, March 26). Is Rivian the Next Tesla? Www.atlantis-Press.com; Atlantis Press.
https://doi.org/10.2991/aebmr.k.220307.453