Rivian CEO says the company tore down a highly popular Chinese EV. Here's what he thought.

Original story by: Business Insider Last updated: Oct 23, 2025

Context: Rivian CEO RJ Scaringe discussed China's electric vehicle (EV) market and a recent teardown of the Xiaomi SU7. While Rivian is not present in China, the company actively analyzes competitors to understand market dynamics and technological advancements.
Ad

Ad
Detailed Summary:
- Rivian, despite not operating in China, benchmarks competitor vehicles, including the Xiaomi SU7, as is standard industry practice.
- Rivian CEO RJ Scaringe found the Xiaomi SU7 to be a "nicely done" and well-executed technology platform with significant vertical integration.
- Scaringe stated that the teardown of the SU7 did not reveal any novel technology or "secret sauce" contributing to its affordability and success.
- He attributed China's lower EV costs primarily to macroeconomic factors such as low labor costs and substantial government support.
- These factors include government grants for plant construction and a low or negative cost of capital for Chinese companies, a stark contrast to the U.S. market where such extensive subsidies are not prevalent.
- Scaringe believes that de-mystifying China's rapid electrification rate involves understanding these economic and governmental drivers, rather than attributing it to an inexplicable "magic."
- The U.S. does offer loans, such as the $6.6 billion loan to Rivian for its Georgia plant, but direct government grants for production facilities are not common.