Rivian, the electric vehicle automaker, has recently made significant announcements at the Bank of America Securities Summit that have caught the attention of investors and fans alike. The company’s CFO, Claire Rauh McDonough, revealed new information about the R1 truck ramp, the profitability of the company, and its upcoming R2 vehicle. Additionally, she provided updates on the production ramp of the Electric Delivery Van (EDV) and the Adventure Network charging infrastructure.
One of the most significant announcements made was that Rivian remains on track to achieve profitability by the second half of 2024. McDonough stated that this is primarily driven by R1 and van deliveries. Additionally, the company aims to produce 85,000 vehicles annually by 2026, a production number that was previously undisclosed.
Furthermore, McDonough revealed that the average purchase price of Rivian’s trucks has steadily increased, indicating that more premium buyers are coming to the automaker. However, she noted that the company does not currently plan to increase the base price of its R1 vehicles.
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Regarding the R2 vehicle, McDonough estimated that production would begin in the 2025-2026 timeframe, with the aim of producing 200,000 R2 trucks during 2026. She also noted that the vehicle would aim to compete with other luxury volume sellers like the Tesla Model Y and may start at around $40,000. Finally, McDonough highlighted that R2 aims to be both a volume seller and a global vehicle, meaning it will be available in numerous markets.
Rivian’s focus on the production ramp of the Electric Delivery Van (EDV) was also highlighted during the summit. The company’s CFO noted that the van takes “enduro-motor” priority over the dual-motor R1 vehicles. Additionally, the van received two notable production upgrades in Q1 of this year, integrating the new motor and Rivian’s new LFP battery pack.
Other announcements made included updates to Rivian’s Adventure Network charging infrastructure. The company plans to join the “Federal Charging Fund” in the United States to receive incentives from the federal government to place its charging network. This move will require Rivian to open its network to other EVs. Nonetheless, with the feds willing to put up as much as 80% of the cash required for installation, many consider it a wise move for Rivian.
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Overall, Rivian’s announcements have left investors and fans excited about the future of the company. With its focus on the production ramp of its electric vehicles and its charging infrastructure, Rivian is well-positioned to compete with other luxury volume sellers in the market. As Rivian’s CFO notes, “We’re moving fast, and we’re very focused on our objectives.
