Photo: Rivian | Edited
While busy ramping up R1T and R1S production at its Normal, Illinois, factory, Rivian has almost completed the design phase for its R2 line of vehicles. According to the company's CFO, Claire McDonough, Rivian will show the first R2 model, a crossover, early next year. The first deliveries should start in 2026.
Rivian is following in Tesla's footsteps, starting with expensive luxury vehicles and using the money to finance the development of more affordable models. The R1S and R1T have been praised for their qualities, although it wasn't always smooth sailing for the EV startup. The problems piled up last year when the company had to make painful decisions. Claire McDonough, Rivian CFO, thinks the worst is now behind, and the R2 has a more solid base to start than R1 had in the beginning.
Although there isn't much information, the R2 vehicles are expected to mirror the R1 truck and SUV combination in a smaller format. Rivian CEO RJ Scaringe teased the R2S crossover recently, and Claire offered more details about its development during the Deutsche Bank conference on June 15. The R2S represents Rivian's bet on the future against Elon Musk's warnings. Musk said that building a second factory while the first one is not fully utilized is a suicidal move.
Based on Claire's answers to investors, we take it that the R2 design has been frozen or will be soon. RJ Scaringe showed a clay mockup, while pictures on a wall nearby revealed that the crossover would be named R2S, as expected. Claire says she gets excited about it every day as she spends time with the design team and the clay models. The team is now anxious to show their work to the public, but we'll have to wait at least another half a year for the public unveiling. Claire said "early 2024," but that could mean much work still needs to be done by then.
Rivian is well positioned to leverage all the cost advantages it has gained with the R2 production during the past two years and make the R2 models not only affordable but also profitable. The EV startup is scouting the $40,000-$60,000 vehicle segments to carve out a niche for the R2. This implies that the upscale versions of upcoming crossover could sell in this price bracket, but more affordable variants are also planned. Claire reminded everyone how the R1 started with higher prices, which went down as Enduro motors were introduced, and the LFP batteries will make the R1 vehicles even more affordable.
The R2S should inherit much of the adventurous spirit of the R1S, not only aesthetically but also functionally. Cutting features is unavoidable, as Rivian needs to keep costs down to make the R2S affordable and thus target a larger addressable market. The current development phase is mostly about striking the right balance and trade-offs regarding features without losing the Rivian brand's essence.
The Georgia factory should be mostly complete by 2025, revealed Claire, in time to start preparations for the R2 production. The factory should be mostly paid for by then, with some post-production-start payments scheduled throughout 2026. As the R2S is also expected to start production by then, with the first deliveries in 2026, Rivian should not have cash flow problems that would hinder the R2 ramp-up.
Although there isn't much information, the R2 vehicles are expected to mirror the R1 truck and SUV combination in a smaller format. Rivian CEO RJ Scaringe teased the R2S crossover recently, and Claire offered more details about its development during the Deutsche Bank conference on June 15. The R2S represents Rivian's bet on the future against Elon Musk's warnings. Musk said that building a second factory while the first one is not fully utilized is a suicidal move.
Based on Claire's answers to investors, we take it that the R2 design has been frozen or will be soon. RJ Scaringe showed a clay mockup, while pictures on a wall nearby revealed that the crossover would be named R2S, as expected. Claire says she gets excited about it every day as she spends time with the design team and the clay models. The team is now anxious to show their work to the public, but we'll have to wait at least another half a year for the public unveiling. Claire said "early 2024," but that could mean much work still needs to be done by then.
Rivian is well positioned to leverage all the cost advantages it has gained with the R2 production during the past two years and make the R2 models not only affordable but also profitable. The EV startup is scouting the $40,000-$60,000 vehicle segments to carve out a niche for the R2. This implies that the upscale versions of upcoming crossover could sell in this price bracket, but more affordable variants are also planned. Claire reminded everyone how the R1 started with higher prices, which went down as Enduro motors were introduced, and the LFP batteries will make the R1 vehicles even more affordable.
The R2S should inherit much of the adventurous spirit of the R1S, not only aesthetically but also functionally. Cutting features is unavoidable, as Rivian needs to keep costs down to make the R2S affordable and thus target a larger addressable market. The current development phase is mostly about striking the right balance and trade-offs regarding features without losing the Rivian brand's essence.
The Georgia factory should be mostly complete by 2025, revealed Claire, in time to start preparations for the R2 production. The factory should be mostly paid for by then, with some post-production-start payments scheduled throughout 2026. As the R2S is also expected to start production by then, with the first deliveries in 2026, Rivian should not have cash flow problems that would hinder the R2 ramp-up.
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