The Rivian R2: How the Auto Industry Has Solved Its Challenges? An Investors’ Report on a Young Automaker
Rivian is also revealing the R2 during an especially tumultuous time — for itself and the entire auto industry. EV sales are up, but growth has slowed considerably as more customers have proven reluctant to make the switch, wary of high prices and EV charging reliability. And Rivian is finding itself in a considerable cash crunch, as its costs grow beyond the pace of its revenue.
The R2 won’t go into production until 2026, but when it does it will come with an estimated range of 330 miles, a 0–60mph time of three seconds, and a starting price of $45,000 — placing it slightly below the current average selling price for a new internal combustion vehicle. The price could be even lower if it ends up qualifying for the $7,500 federal tax credit.
A new $5 billion facility in Georgia is adding to the mix of factors and could pose a challenge for the young company. (Rivian was founded in 2009 but only came out of stealth in 2018. It debut on the public markets in 2021.
Investors were dubious. How could a company not have a realistic forecast of how production will perform when the market is so volatile? “Rivian’s results continue to largely disappoint, whether on volume or margin progression,” Morgan Stanley wrote in a note to clients.
It’s an especially vulnerable period for a young company to be in. Rivian doesn’t have a financial benefactor like the Public Investment Fund in Saudi Arabia. Amazon owns a 16 percent stake in Rivian, making it the company’s largest stakeholder. But the company’s influence over Rivian has diminished over time, especially after its “exclusive” delivery van partnership ended last year.
You don’t need a crystal ball to know there will be a lot more competition by that point. Companies with a lot more experience making mass-market vehicles will have a lot more EVs for sale. Rivian needs to sell its current generation of vehicles to more customers in order to survive the short term.
Legacy car companies have whole lineups of internal combustion engine vehicles to fall back on when times are tough. Ford, GM, and others are reporting robust hybrid sales, for example, which helps take some of the sting out of the billions they’re losing on EV development and production.
The Rivian R2: A Smaller Model for a Family of Cars and Trucks and a Bicycle Innsey
The Rivian R2 is 185.6 inches in length, which is less than two inches shorter than a Tesla Model Y or about 15 inches less than an R1S. Its width is 75 inches, or 84.4 inches with the mirrors, and the height is 66.9 inches. Rivian described the front truck as roomy. Keeping with its “adventure” ethos, the R2 will also feature a nifty bike mount system that can connect easily with the vehicle’s rear accessory ports.
