Benzinga - by Shanthi Rexaline, Benzinga Editor.
The wait is finally over. Electric vehicle startup Rivian Automotive, Inc. (NASDAQ:RIVN) is all set to unveil its more affordable R2 platform vehicle on Thursday.
The Launch Venue, Itinerary: The global R2 launch event, scheduled for 1 p.m. EST on Thursday, will be held at Laguna Beach, California, where its flagship retail location was opened in December 2023.
The event will also be live-streamed to a global audience. Rivian fans can access the live stream by clicking this link. The Irvine, California-based EV maker has been heavily promoting the launch event on its social media handles through countdowns.
R2. Tomorrow.Watch the live reveal and reserve your R2 on March 7th.
https://t.co/uMdVuBU9f6 | #RivianR2 pic.twitter.com/om35Tn9oia
— Rivian (@Rivian) March 6, 2024
In mid-February, the company released a nearly 30-second teaser video for the launch, giving away very little except that the second-gen EV platform promises adventure.
What We Know About R2 So Far: “R2 represents the essence of our brand while targeting the significant mid-sized SUV segment, a massive market with limited compelling EV options beyond Tesla,” said Rivian CEO R.J. Scaringe on the company’s earnings call held late last month.
The top brass said the “R2 has been developed with vertically-integrated propulsion platforms, electronics, and software to create an incredible user experience.”
The upcoming EV will be manufactured at Rivian’s Georgia plant, which will likely have an annual production capacity of 200,000 units. Following the completion of the project’s Phase 2, the production capacity is expected to double.
Claire McDonough, CFO of Rivian, said on the third-quarter earnings call that the start of production could be in 2026. Management commentary suggests the R2 will likely be more compact and available at a lower price point.
Scaringe positions the product against Tesla’s Model Y. “There's an extreme vacuum of choice we feel in the sort of $45,000 to $50,000 price range for midsize SUVs,” he said on the third-quarter earnings call. The lack of choices has left Tesla with a highly concentrated market share in the segment, he said.
Specifications leaked earlier this week point to a range of 300 miles and a 0-60 mph acceleration time of three seconds. The leaker cited data taken from Rivian’s R2 website using Web Inspector.
Why It’s Important: Rivian currently has three EVs in its lineup – the R1T pickup truck, the R1S SUV, and an electric delivery van. The R1T has a starting price of $69,900, excluding taxes and fees, and the R1S price starts at $74,900.
The upcoming R2 platform could appeal to price-sensitive customers as EV adoption slows. The drawn-out production timeline, however, could throw up unexpected challenges down the line.
Rivian has had a challenging 2023 as it struggled with softer demand and production ramp-up. The price competition in the industry also put the company on the back foot. The company lost about $94,912 per EV it sold in 2023. Given the capital-intensive nature of the auto business, liquidity is a concern. Rivian ended 2024 with cash, cash equivalents, and short-term investments of $9.4 billion.
The company announced the elimination of 10% of its workforce, potentially in a bid to right-size and streamline operations amid inclement conditions.
Rivian’s 2024 delivery guidance issued last month did not go down well with investors and the stock has been under pressure since then. It touched a record low of $10.05 (on an intraday basis) on Feb. 26 and has been bouncing just off the level since then.
Rivian ended Wednesday’s session up 0.91% at $11.03, having traded in a 52-week range of $10.05 to $28.06, according to Benzinga Pro data. The stock has shed a whopping 47% for the year-to-date period.
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Photo courtesy: Rivian
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