Although Rivian (RIVN) and Tesla offer other products, they are more similar than you think. Rivian CEO RJ Scaringe has said that its next R2 style will be its edition of the Tesla Model 3.
It may not sound like a Tesla Model 3, but Rivian’s R2 will help shape the future of electric vehicle startups. Like Tesla, Rivian has more expensive flagship models.
Tesla introduced the Roadster in 2008, which led to the Model S in 2012. Several years later, Tesla announced its first mass-market car, the Model 3.
Although Tesla went through what CEO Elon Musk described as a “production hell” when expanding the Model 3, the paintings paid off. In 2018, Tesla’s Model 3 was the best-selling electric vehicle in the world, holding the name until the Model Y surpassed it. in 2020.
Tesla’s Model 3 will be among the best-selling cars (petrol or electric) in the world in 2023 as it continues to be in demand.
Rivian has been ramping up production year-round. Although several competitors lowered their EV targets, Rivian increased its production target after the third-quarter results. The electric vehicle maker now aims to build 52,000 cars this year, more than double the 24,337 produced last year.
Like Tesla, Rivian plans to expand into new markets. The automaker chose Clayco as its partner earlier this month to build its massive $5 billion EV plant in Georgia.
The new facility will space out Rivian’s R2 vehicles. Scaringe had said in the past that the R2 would start between $40,000 and $50,000. Rivian’s R2 will be a mid-size electric SUV.
On the How I Built This One podcast with Guy Raz, Scaringe recently talked about ramping up production and expanding the brand, as well as other plans for the future.
When asked if the R2 would be the Rivian edition of the Tesla Model 3, Scaringe replied that “strategically, it’s very similar. “
Scaringe explained that Rivian with its R1 flagships are deliberately priced premium for their features, capabilities and much more.
Rivian will take the “brand essence” represented in those products and integrate it into more models.
The Rivian R2 is expected to be revealed for the first time next year ahead of its 2026 launch. Construction in Georgia will begin soon and painting will be finished by the end of the year.
An official groundbreaking ceremony is expected in early 2024. Once the first stage is complete, Rivian expects to be able to build 200,000 EVs a year. By 2030, the EV maker looks to double it.
Rivian continues to outperform its rivals even though the R1T electric truck and R1S SUV are priced around $70,000.
The company also has a major lifeline with its electric advertising van. E-commerce Amazon announced in 2019 that it would deploy 100,000 Rivian EDVs by 2030. It has already deployed more than 10,000.
Rivian is like the much younger sibling of Tesla in the USA. Rivian has learned much from Telsa achievements and mistakes. Rivian will not challenge Tesla or another large automaker for sales or revenue but it sure seems they will have significant share of the higher end off road capable BEV truck n large SUV market for the rest of this decade.
Another mid size BEV suv is not what NA needs right now but I’m sure Rivian’s version will be more rugged, off road capable then all others in its class sold in NA.
The automaker recently ended its exclusivity with Amazon and hired its second partner, AT.
Rivian drivers will also get access to Tesla’s supercharger network. Starting early next year, Rivian will provide an adapter, and eventually, it will move to the NACS connector.
The EV maker is following Tesla’s lead with its own charging network. Rivian is focused on reliability and availability, as a leader in electric vehicles. Scaringe said having several other charging systems can make adoption easier. It plans to open up its network to other brands such as Tesla.
Scaringe said it has about 60 Adventure Network sites, but there are still many more to build.
Peter Johnson covers the automotive industry’s step-by-step transformation to electric vehicles. He is an experienced investor, enthusiast of money and electric vehicles. His enthusiasm for electric vehicles, primarily Tesla, is one of the main reasons he pursued a career in the investment space. If he doesn’t tell you about his latest discoveries in the 10km, you can find him enjoying the outdoors or exercising.