Rivian R2.
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Rivian has just released a couple of interesting, and rather obnoxious teaser videos of their upcoming Rivian R2 SUV.
They show families discovering the world, going to campsites, forests, near lakes, and even to their neighbors’ swimming pools. All things that people can currently do with a Toyota RAV-4 or even a regular car. Rivian is obviously trying to make people think these things were previously impossible before the new R2 SUV.
Besides the Rivian R1 being way too expensive for most people, now regular average humans will also be able to enjoy the pleasure of owning a tightly coveted smaller vehicle from the previously very expensive Rivian brand.
Trust me, the only interesting things about these self-serving clips are the first 2 or 3 seconds of each where they actually show a bit of the actual cars. Which is more interesting than stuff we’ve all seen, like kids jumping into a pool or a dog playing in the mud.
These teasers show, at least so far, a shape that is very similar to the larger and much more expensive Rivian R1S. Which could be the key to success. Making your smaller and cheaper model look like the larger more expensive one most people can’t afford is always good. And very similar to what Tesla did years ago with the Model S and Model 3.
The new Rivian R2 is supposed to start at a price between $ 40,000 and $ 50,000. Which would compete exactly against the Tesla Model Y. Although for the base price of $ 44,000, the single-motor Model Y is a loaded car, and it will be interesting to see what Rivian will offer in the base version of the R2. I guess we should expect AWD to be standard since they sell that Off-road adventurer image. (Or the image of a family who takes their dogs to a local mud pile).
I do like the look of the Rivian R1S a lot, and part of me even wish I could afford one… The R2 was scheduled to begin production next year but that has already been pushed back to 2026. Which isn’t great news. Especially since it probably means a price increase by then. Rivian is also planning European sales of the new R2.
At least, we only have to wait a couple of days to see it since it comes out on the 7th. However, it will be quite a while before we can all see one in person…
About a week ago.
In the aftermath of disappointing Q4 results and 2024 guidance, Rivian Automotive (NASDAQ:RIVN) limped into Friday’s open hit with a double-downgrade from UBS.
The Swiss bank cut its rating on the electric vehicle maker to Sell from Buy and slashed its price target by more than 60% to just $8, 30% below Thursday’s closing price.
Following Thursday’s 25.6% loss, RIVN shares are down another 3% in premarket trade.
“The rapidly changing EV backdrop causes us to reassess our demand view and makes RIVN’s current strategy quite onerous on the ramp to profitability and cash flow,” UBS said in Friday’s research report.
You want to be the poor slob, with an extremely heavy paperweight sitting in your driveway if you can’t get parts? Nice looking design, I see them around, but long term?
Buy to Sell by a rebutable outfit is a pretty serious knock against Rivian.
Lets be honest here… if you’re going to seed a business like this, is a pickup truck really where you want to be in a first model that’s meant to provide revenue to the rest of the lineup’s development. Looking around in middle America, there aren’t a lot of electric cars here. But you will see big, raised, cloud-belching diesel trucks. A lot of big trucks. The ModelY is where they should have been first. I’m just saying, the coasts are where charging infrastructure is available and that’s not exactly big truck country. Carve a niche, you’ll be confined by it.