Rivian CEO says Tesla’s market share is shrinking because the market is ‘saturated’ with the Model Y and Model 3

Tesla’s market share is sinking, and Rivian CEO RJ Scaringe thinks it's because consumers are disinterested in the lack of variety.

In an interview with The Verge ’s Decoder show , Scaringe said that while Tesla’s Model Y and Model 3 are excellent, they’ve also “fairly saturated” the market—and buyers want more choices.

"If you want to spend less than $50,000 for an EV, I'd say there's a very, very small number of great products," he told Decoder.

Tesla’s Model Y was the top-selling car model in the world last year, according to a report by JATO Dynamics, but Elon Musk’s EV maker fell under 50% market share in the U.S. for the first time earlier this month. The company’s second quarter revealed a 4.8% decrease in sales for the company and a 45% collapse in profit for the quarter ended in June.

Scaringe said that some unnamed EV companies have tried to replicate the look and feel of the Model Y because of its global success, rather than giving consumers diverse choices as they do in the gas-powered vehicle market. While he gives the Model Y credit for its quality, he said Rivian’s upcoming model, the R2, will be no copycat.

"That's not to say Model Y isn't a great car," Scaringe said. "I think it's an awesome car. I've owned one before. It's just to say that I think the world needs more variety."

Late last month, Rivian secured a $5 billion lifeline from Volkswagen that sent its shares up 50% after having sunk to record lows earlier this year.

While in many ways Scaringe’s company is similar to Tesla, the chief executive said in a thinly veiled slight to Musk last month that he was letting the products do the talking instead of making bombastic statements as Musk has made about Rivian in the past .

The overall EV market has continued to grow despite Tesla’s recent sales slide. EV sales in the U.S. grew by 11.3% year-over-year in the second quarter, according to a report by Cox Automotive . And estimates by Kelley Blue Book put EVs at about 8% of all new vehicles sold in the U.S. in the second quarter, up from 7.2% a year ago.

But while several new models are soon to be released, including Rivian’s R2 , the number of different electric vehicle models sold in the U.S. has stayed mostly constant—and some big automakers have scaled back their plans.

Earlier this year, Musk canceled a long-awaited low-cost EV and pivoted the company to focus on robo-taxis . American carmakers Ford and GM have both also stepped back from ambitious EV plans recently.

This story was originally featured on Fortune.com