Rivian Unveiled, Not One, but Three Smaller & Cheaper Off-Road EVs

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New Off-Road EVs

The electric off-road startup has been working on its smaller next generation platform and the auto world was eagerly anticipating the first vehicle based on it. The firm unveiled on Thursday the R2 SUV, which is more compact and affordable than the existing R1. It will start at $45,000 (compared to $70K for the R1), deliveries are expected in the first half of 2026 and it will be ship outside the US, albeit at a later stage. [1]

The R2 will enter a segment with "limited compelling EV options" as per CEO's RJ Scaringe comments during the last earnings call [2]. However, the mid-sized SUV market is dominated by Tesla Motors Inc whose Model Y was the best selling car in the world last year, according to the preliminary report of Jato Dynamics. [3]

Rivian Automotive did not stop at the R2 though, pleasantly surprising audiences with two more new vehicles, as it unveiled the R3 crossover and its R3X performance variant. Less details were shared around the R3, but it will have more tidy dimensions, it will be priced below the R2 and shipments will commence later. This timeline will ensure "smooth launch and rapid ramp" of the R2.

The announcement comes at a period of slowdown in the demand for electric vehicles, hurt partly by high interest rates that make funding of the already pricier EVs much costlier. Even though total sales in the US grew by a strong 46.3% last year according to Cox Automotive, the figured marked another deceleration in growth. [4]

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This situation has turned some legacy auto giants like Ford, to emphasize on hybrids. Others push towards the production of cheap electric cars that will accelerate mass adoption. Tesla CEO Elon Musk aims to launch a 25K EV in the back-half of the next year, German behemoth Volkswagen is planning a similarly priced vehicle [5] and French Renault unveiled its own competitor this month [6].

Although Rivian's new vehicles will not compete at such low price range, they will be crucial for its future. They can help increase its customer base, stop the cash burn and eventually make money. Rivian Automotive lost more than $43,000 on every vehicle it delivered in the fourth quarter of 2023 [7] and needs to improve efficiency, lower costs and ramp up production if it wants to break into profits.

The off-road EV maker seems to be turning the corner after the recent adversities, to which unprofitable start-ups are more vulnerable, but is not out of the woods yet. Its latest earning report offered reasons for concern, as it financials deteriorated in Q4, cash remained below $10 billion and deliveries dropped 10% q/q. Even though it overachieved with the output of 57,232 units in 2023, executives expect to produce fewer cars this year, in a disappointing guidance. The new vehicles, the accelerated delivery schedule for the R2 and the lower capital expenditures for it are encouraging.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.



Retrieved 08 Mar 2024 https://rivian.com/newsroom/article/rivian-announces-mid-sized-platform


Retrieved 08 Mar 2024 https://rivian.com/investors


Retrieved 08 Mar 2024 https://www.jato.com/tesla-model-y-to-be-crowned-worlds-best-selling-vehicle-of-2023/


Retrieved 08 Mar 2024 https://www.coxautoinc.com/wp-content/uploads/2024/01/Q4-2023-Kelley-Blue-Book-Electric-Vehicle-Sales-Report.pdf


Retrieved 08 Mar 2024 https://www.volkswagen-newsroom.com/en/press-releases/world-premiere-of-the-id-2all-concept-the-electric-car-from-volkswagen-costing-less-than-25000-euros-15625


Retrieved 08 Mar 2024 https://media.renault.com/renault-5-e-tech-electric-the-electric-renaulutionary-pop-icon


Retrieved 23 Jun 2024 https://assets.rivian.com/2md5qhoeajym/2Q0NcEACrvGFosLhpyR15H/bfe2aa72cb657c4cebb9f4a85e913f07/EX_-_99.2_4Q23_Shareholder_Letter_Final_Compressed.pdf

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