Rivian is currently developing an affordable R2, which could replicate the success Model 3 brought in for Tesla. Rivian is a prominent and successful EV startup which currently sells the popular R1T pickup truck and R1S SUV. However, the entry-level price point of around $70,000 for its portfolio can’t be considered a mass market. In order to address this, the Ford-backed American EV startup is preparing the R2, which will have an SUV and pickup truck body type. Let’s delve deep into the details.
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Rivian R2 Aims To Achieve What Tesla Model 3 Did
As per the latest reports, the Rivian R2 could be unveiled in the first half of 2024. In fact, it could be priced at around $40,000 for the base model. That would be quite an enticing opportunity for new customers to experience what Rivian has to offer. If you remember, a similar story followed the Tesla just a few years ago. People had the perception of Tesla being a premium luxury car brand. In order to break that image, the Model 3 was launched. Today, Tesla is the highest-selling EV maker on the planet.
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By launching a more affordable model like the R2, Rivian aims to shift its focus on volume. At the moment, Rivian achieved healthy sales of 15,564 units in the third quarter of this year. This is almost 2.5 times what it sold in the same quarter last year, 6,584 units. In total, the projection stands at an impressive 54,000 units in this fiscal year which will be more than 2.5 times of what it sold in the last fiscal year, 20,000 units. Hence, there is a clear strategy in place for growth.
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Rivian will also benefit from its cooperation with Tesla which allows the former to use Tesla’s supercharging infrastructure. That will be a major boost in the ownership experience of the Rivian electric car owners. In essence, it is clear that going forward, growth and success will rely heavily on collaborations rather than competition. Still, in order to popularize EVs even more, attractive prices are necessary. Also, the federal tax credit benefits from the government will play a huge role in making EVs more affordable. Resultantly, the chances of people jumping onto the electric vehicle bandwagon will be much higher.