Rivian Targets Tesla with New R2 SUV
In March 2024, electric vehicle manufacturer Rivian (RIVN) revealed a trio of compact EVs: the R2, R3, and R3X. This move signals Rivian’s expansion into the lower-cost vehicle market.
The first of these vehicles, the R2, is a smaller SUV designed to resemble its larger sibling, the R1S. Rivian aims for the R2 to compete directly with Tesla’s best-selling Model Y.
Rivian is aiming for a broader audience with the R2, stating that the new car will have an electric range exceeding 300 miles per charge, and much of the advanced technology from its larger R1 series. The target price is $45,000.
Rivian CEO Offers Production Update
Rivian CEO RJ Scaringe recently provided updates on the R2’s development via social media.
On March 18, Scaringe shared an image of a raw-metal R2 body, indicating that the company has reached a milestone in the production-ready version of the car. “R2 body built with production dies!!,” Scaringe stated. His post suggests that Rivian has successfully created significant exterior components from machine components at the factory; this is a positive sign for the planned 2026 model-year debut.
Scaringe’s post followed an earlier update on March 13 that spotlighted Tesla’s production capabilities. According to Scaringe, Rivian is incorporating “large high-pressure die castings” throughout the R2’s body. Known as “Gigacasting,” this process enables manufacturers to produce large body components in fewer steps than traditional methods.
Scaringe noted that the use of just three castings eliminates the need to stamp “approximately 50” individual parts and weld “over 300 joints” to create large pieces of the R2’s body.
This announcement comes amid other recent developments for Rivian. A new over-the-air software update gave owners of their Gen 2 R1S and R1T vehicles features like Enhanced Highway Assist, an advanced driver assistance system (ADAS) that provides hands-free driving on compatible highways. Rivian intends to expand this feature with hands-off, eyes-off ADAS capabilities by next year.
Rivian is traded on the NASDAQ as RIVN.
