Rivian’s R2 Launch is A Leap Toward Affordable EVs and Profitability

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Last Updated on February 6, 2024 by TM

Rivian is gearing up to unveil its R2 on March 7, as confirmed in a recent Twitter post. The company’s CEO, RJ Scaringe, has mentioned that the upcoming R2 platform will be smaller and more affordable compared to the previous R1 lineup. While the specific event location hasn’t been officially disclosed, signs point to Laguna Beach, CA, where the city council approved a request for a “Rivian R2 Launch” at the Rivian Theater.

The Rivian South Coast Theater in Laguna Beach, acquired by the automaker in 2021 and renovated in December 2023, is likely to host the event. Plans include displaying six vehicles on a nearby grassy area for a media hands-on experience post-presentation.

Anticipated to debut with a compact SUV, roughly the size of a Jeep Grand Cherokee, the R2 platform is expected to be priced between $40,000 and $60,000. In contrast, the R1 platform starts at around $80,000, with leasing options making some models eligible for a $7,500 tax credit.

Despite CEO Scaringe’s Instagram Q&A revealing a delivery date shift from 2025 to 2026, the March event is expected to precede a substantial waitlist period, as Rivian has yet to commence construction on its Georgia factory slated to produce the R2 lineup.

Rivian currently incurs a loss of approximately $31,000 on each R1 platform vehicle, positioning itself for an all-electric future. The R2 is anticipated to be more cost-effective, aiming to drive the company towards profitability. In late 2023, the CEO mentioned ongoing discussions with a “pipeline” of commercial customers for electric vans, following the expiration of its exclusive agreement with Amazon. While fulfilling its commitment to Amazon’s 100,000 van order by 2030, Rivian plans to expand its electric vehicle offerings.

To wrap, Rivian’s R2 reveal on March 7 signals a shift towards a more affordable and efficient electric vehicle lineup, with a potential impact on the market and the brand’s journey toward profitability.

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