Electric vehicle (EV) manufacturer Rivian, often viewed as a rival to Tesla, is drawing parallels between its forthcoming R2 model and Tesla’s widely successful Model 3. Rivian’s CEO, RJ Scaringe, highlighted the strategic similarity between the two models, emphasizing the intent to follow a trajectory akin to Tesla’s evolution from premium flagship models to a mass-market offering.
While the physical appearance of Rivian’s R2 may differ from Tesla’s Model 3, Scaringe explained that, strategically, the two models share common ground. Much like Tesla’s journey from premium models like the Roadster and Model S to the more affordable Model 3, Rivian initiated its production with higher-priced flagship models, specifically the R1 series.
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Tesla’s Model 3 achieved considerable success globally, becoming the best-selling electric vehicle in 2018 and holding that position until surpassed by the Model Y in 2020. Scaringe acknowledged the strategic alignment and conveyed Rivian’s intention to imbue the essence of its flagship R1 products into more economically accessible models, exemplified by the forthcoming R2.
Rivian has witnessed an upward trajectory in production throughout the year, with an adjusted goal of manufacturing 52,000 vehicles in the current year, marking a significant increase from the 24,337 vehicles produced in the previous year. The company, mirroring Tesla’s expansion strategy, plans to enter new markets and recently selected Clayco as its partner to construct a sizable $5 billion EV plant in Georgia.
This new facility will be the production hub for Rivian’s R2 vehicles, described as a mid-size electric SUV with an estimated starting price between $40,000 and $50,000. Scaringe emphasized the strategic alignment between Rivian’s approach with the R2 and Tesla’s successful Model 3, indicating an intention to broaden the brand’s reach by incorporating features and capabilities from the flagship R1 products into more affordable offerings.
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Anticipated to be unveiled next year and launched in 2026, the Rivian R2 signifies the company’s continued growth and market expansion. Construction on the Georgia site is set to commence soon, with a formal groundbreaking ceremony expected in early 2024. Upon completion of the initial stage, Rivian aims to achieve an annual production capacity of 200,000 EVs, with aspirations to double that figure by 2030.
