Elon Musk appeared at the Greater Philadelphia Expo Center in Montgomery County on Friday night for his second town hall in the battleground state of Pennsylvania. With just 16 days until the election, Musk - and his pro-Trump America PAC - are holding town halls statewide to support the former president.

In an off-topic conversation, an audience member asked Musk why Tesla had not purchased the struggling EV competitor Rivian. 

Musk responded:

"I wish them the best. I hope they do well. The car industry is a very difficult industry. There's only two US car companies that haven't gone bankrupt, and that's Ford and Tesla. Rivian's going to have a hard time. It's insanely difficult to compete in the car industry. If it were not for two technology discontinuities, one being electrification and the other being autonomy, I think Tesla could not succeed without solving both."

Earlier this month, Rivian announced that third-quarter vehicle deliveries missed forecasts and lowered its full-year production guidance amid continued "component shortage."

Rivian said it delivered 10,018 vehicles in the quarter and produced 13,157 units. This missed FactSet estimates of 12,670 deliveries. 

The problem with Rivian is the limited affordability options for most models—they're out of reach for the average consumer. The company expects to launch a smaller Tesla Model Y-rivaling R2, which won't roll out onto US highways until late 2026 or even 2027.

Last month, Morgan Stanley's Adam Jonas downgraded names like GM, Ford, Rivian, Magna International, and Phinia amid the slowdown in the auto market. 

It doesn't help when high interest rates and elevated vehicle prices have sent new monthly car payments skyrocketing higher in several years.