Rivian CEO RJ Scaringe Positions R2 As Tesla Model 3 Challenger: 'Strategically, It's Very Similar'
Portfolio Pulse from Anan Ashraf
Rivian CEO RJ Scaringe compares the upcoming R2 vehicles to Tesla's more affordable models, like the Model 3. Rivian's R1T truck and R1S SUV, priced over $70,000, will be followed by the R2, aiming for a lower price point around $45,000 to $50,000. Production of the R2 platform is set to begin in 2026, with unveilings in early 2024. Rivian's Q3 deliveries nearly matched Tesla's Model S and X, and it reported higher-than-expected revenue with a loss of $1.19 per share. The company also recently reduced its battery technologies team by 8% to focus on the R2.
December 29, 2023 | 11:52 am
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NEGATIVE IMPACT
Tesla's affordable Model 3 and Model Y are cited as the benchmarks for Rivian's upcoming R2. While Rivian's Q3 deliveries closely matched those of Tesla's Model S and X, the direct competition from Rivian's R2 could impact Tesla's market share in the affordable EV segment.
Rivian's entry into the more affordable EV market with the R2 could pose a threat to Tesla's dominance in this segment. The close delivery numbers in Q3 suggest that Rivian is a formidable competitor. However, the impact may be more speculative at this stage, as the R2's production is not imminent.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Rivian's R2 is positioned to compete with Tesla's affordable models, aiming for a lower price point market. With production starting in 2026 and unveilings in 2024, Rivian's Q3 performance showed strong deliveries and revenue, indicating a positive outlook for the company.
The announcement of the R2 targeting a competitive price point could attract investor interest, especially given Rivian's solid Q3 performance. The comparison to Tesla's successful Model 3 may also inspire confidence in Rivian's market strategy. However, the actual production is still a few years away, which may temper immediate stock movement.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100