Rivian executives embarked on a rare media tour discussing the company's plans. Rivian CEO RJ Scaringe and the company's CFO Claire McDonough offered a unique perspective on Rivian's future R2 platform. This will underpin a more affordable truck-SUV electric duo that will take on Tesla Model Y and Ford Maverick.
Tesla is known as a company that never spends money on advertising. Despite that, it doesn't lack coverage, thanks to a huge fan community willing to spread the word. Rivian follows in its footsteps with a similar strategy and has built one of the most engaging communities. Rivian's Reddit channel is among the most active on the platform, and the company's representatives engage with people, gathering feedback to implement new features.
The company is trying to expand its reach, and we've recently seen CFO Claire McDonough discussing the company's plans during BofA Securities Summit on April 4. Three days later, CEO RJ Scaringe was also a guest on Marques Brownlee's "WVFRM" podcast, talking strategy and key company decisions. Both offered unique perspectives on the company's plans. Surprisingly, the most interesting information was not provided by Scaringe but by McDonough.
Rivian's head of finances revealed that the company aims to achieve positive gross profit in the second half of 2024. This is almost a must, considering that the current spending projections led analysts to believe that existing cash reserves would dry out about that time. Rivian R1T and R1S production should reach 85K units in 2024, which is not very much compared to the 50K it aims for in 2023.
The R1 platform provided a solid foundation for Rivian's beginnings, but the startup needs more affordable products to expand its customer base. It's good to know that Rivian is already pushing with the R2 development, although things don't seem very advanced. Both Rivian executives offer general considerations with very few concrete details. What is certain is that the R2 would compete with other premium volume EVs, with the Model Y as the obvious target.
The R2 line of vehicles is still expected to mirror R1, with a crossover and an electric pickup sharing the same underpinnings. Think of them as a Ford Mustang Mach-E and an electric Maverick kind of relationship, although Rivian might go after the Jeep Wrangler with its smaller electric off-roader. One thing is certain: Rivian will consider global markets when launching the R2 vehicles.
Based on RJ Scaringe's talks with Brownlee, the R2 line will maintain the adventurous theme that made the R1 unique. Given the price point Rivian is considering, the vehicles would have fewer luxury features, aiming for a no-nonsense approach. Don't expect them to feature more than two electric motors, and, of course, you can forget about the flashlight and other gadgets.
Rivian would want to vertically integrate more parts for the R2 production, going beyond the Enduro drive units. We know from previous statements that Rivian will be building its own batteries in the future. As per McDonough's words during the BofA Securities Summit, the R2 production capacity will be 200K units in 2026.
After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions. Full profile
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