Rivian Automotive, the electric vehicle (EV) start-up, is forging ahead with the release of its three newest models, including the R2. Despite some concerns about a potential slowdown in EV interest, the company is pushing forward, optimistic about the reception of its vehicles.
The R2, an all-electric SUV, is set to start production later this year with deliveries anticipated in early 2023. Priced at a base of $45,000, it qualifies for the $7,500 Inflation Reduction Act tax credit, a strategic move to make the vehicle accessible to a wider customer base.
Originally, plans were to produce the R2 in Georgia. However, Rivian has opted to temporarily suspend construction of its $5 billion Georgia facility, focusing instead on readying the manufacturing process in Illinois. The production kick-off is set for 2026.
RJ Scaringe, CEO of Rivian, has expressed his excitement for this project. He sees it as a significant step towards achieving scale for the company and contributing to their goal of sustainable, zero-emission transport solutions. He further mentions the job opportunities it will generate and the potential for economic growth, reinforcing Rivian’s commitment to community development.
Rivian also revealed two other models. The compact R3 and performance-oriented R3X are both built on the R2 platform. Presently, Rivian is accepting reservations for the R2 but has yet to release prices or delivery dates for the other two models.
On the announcement day, Rivian’s stock saw a boost of 13.3%. In a Q4 earnings call, Scaringe noted the R2 embodies the brand’s core, directing its attention to a currently underserved medium-sized EV SUV market segment.
Despite a challenging phase marked by a more than 25% stock drop post-its Q4 earnings report, layoffs, and a focus on maintaining 2024 production levels, Rivian remains hopeful. According to CFO, Claire McDonough, the company has sufficient resources to support operations until 2025.
While Rivian faces stiff competition from established manufacturers like Ford and Tesla, the company stays resolute. Rivian’s customer base coupled with increasing awareness of the environmental impacts of traditional gas vehicles gives them hope for future demand for its all-electric offerings.
