Although Rivian (RIVN) and Tesla have different products, they are more alike than you may think. Rivian’s CEO RJ Scaringe said its upcoming R2 model will be its version of the Tesla Model 3.
It may not sound like a Tesla Model 3, but Rivian’s R2 will help shape the future of EV 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 conventional 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 make 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 $5 billion electric vehicle plant in Georgia.
The new facility will space out Rivian’s R2 vehicles. Scaringe has said in the past that the R2 would cost 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 Rivian’s edition of the Tesla Model 3, Scaringe replied that “strategically, it’s very similar. “
Scaringe explained that Rivian with its R1 flagships are deliberately overpriced for features, capabilities, and more.
Rivian will take the “brand essence” represented in those products and integrate it into more models.
The Rivian R2 is expected to be unveiled for the first time next year ahead of its 2026 launch. Construction in Georgia will begin soon and grading paint will be finished by the end of the year.
An official opening ceremony is expected in early 2024. Once the first tier is completed, Rivian expects to build 200,000 electric cars per year. By 2030, the EV maker aims to double that figure.
Rivian continues to outperform its rivals despite the R1T electric truck and R1S SUV being priced at around $70,000.
The company also has a major lifeline in its electric advertising van. E-commerce company Amazon announced in 2019 that it would deploy 100,000 Rivian electric vehicles by 2030. It has already deployed more than 10,000 of them.
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 that NA wants right now, but I’m sure the Rivian edition will be tougher and more off-road capable than anything else in its class sold at NA.
The automaker recently ended its exclusivity with Amazon and hired its second partner, AT.
Rivian drivers will also have access to Tesla’s Supercharger network. Starting early next year, Rivian will supply an adapter and eventually port it to the NACS connector.
The EV maker is taking another page from Tesla with its own charging network. Rivian is focusing on reliability and uptime like the EV leader. Scaringe said having several different charging providers can help adoption. It plans to open its network to other brands like Tesla.
Scaringe said it has about 60 Adventure Network sites, but there are still many more to build.
Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising