Rivian CEO says Tesla’s market share is shrinking as a result of the market is ‘saturated’ with the Mannequin Y and Mannequin 3

Tesla’s market share is sinking, and Rivian CEO RJ Scaringe thinks it is as a result of shoppers are disinterested within the lack of selection.

In an interview with The Verge’s Decoder show, Scaringe mentioned that whereas Tesla’s Mannequin Y and Mannequin 3 are glorious, they’ve additionally “pretty saturated” the market—and consumers need extra selections.

“If you wish to spend lower than $50,000 for an EV, I would say there is a very, very small variety of nice merchandise,” he advised Decoder.

Tesla’s Mannequin Y was the top-selling car model on the planet final 12 months, in response to a report by JATO Dynamics, however Elon Musk’s EV maker fell under 50% market share within the U.S. for the primary time earlier this month. The corporate’s second quarter revealed a 4.8% lower in gross sales for the corporate and a 45% collapse in profit for the quarter resulted in June.

Scaringe mentioned that some unnamed EV firms have tried to duplicate the appear and feel of the Mannequin Y due to its world success, reasonably than giving shoppers various selections as they do within the gas-powered automobile market. Whereas he offers the Mannequin Y credit score for its high quality, he mentioned Rivian’s upcoming mannequin, the R2, shall be no copycat.

“That is to not say Mannequin Y is not a fantastic automobile,” Scaringe mentioned. “I believe it is an superior automobile. I’ve owned one earlier than. It is simply to say that I believe the world wants extra selection.”

Late final month, Rivian secured a $5 billion lifeline from Volkswagen that despatched its shares up 50% after having sunk to report lows earlier this 12 months.

Whereas in some ways Scaringe’s firm is much like Tesla, the chief govt mentioned in a thinly veiled slight to Musk final month that he was letting the merchandise do the speaking as a substitute of creating bombastic statements as Musk has made about Rivian in the past.

The general EV market has continued to develop regardless of Tesla’s current gross sales slide. EV gross sales within the U.S. grew by 11.3% year-over-year within the second quarter, in response to a report by Cox Automotive. And estimates by Kelley Blue E-book put EVs at about 8% of all new automobiles offered within the U.S. within the second quarter, up from 7.2% a 12 months in the past.

However whereas a number of new fashions are quickly to be launched, including Rivian’s R2, the variety of completely different electrical automobile fashions offered within the U.S. has stayed principally fixed—and a few huge automakers have scaled again their plans.

Earlier this 12 months, Musk canceled a long-awaited low-cost EV and pivoted the corporate to concentrate on robo-taxis. American carmakers Ford and GM have each additionally stepped again from formidable EV plans not too long ago.

This story was initially featured on Fortune.com