Rivian CEO RJ Scaringe Thinks R2 Will Disrupt Tesla's Hold On $45K-$50K EV Market: 'Incredible Carrot For Suppliers'

Rivian Automotive, Inc. RIVN delivered a robust third-quarter performance, surpassing Wall Street expectations, and raised its production outlook for the year. One of the highlights of the earnings call was the discussion surrounding the much-anticipated R2 electric vehicle platform.

During the earnings call, both company executives and analysts heavily emphasized the R2 platform, which was mentioned 15 times.

• Poised to be Rivian’s first global offering, the R2 platform is expected to build upon the company’s previous R1 investments.
• CEO R.J. Scaringe revealed significant progress in developing the R2 platform and making preparations for future production facilities in Georgia.
• CFO Claire McDonough reiterated the company’s commitment to commencing R2 platform production in 2026, with product unveilings anticipated in early 2024.
• “R2 is sort of this incredible carrot for suppliers,” said Scaringe. The company was able to leverage supplier excitement for the platform for materially lowering input costs, he said.
• The R2, while maintaining the brand’s essence, will be more compact and available at a lower price point. “There’s an extreme vacuum of choice we feel in the sort of $45,000 to $50,000 price range for midsize SUVs,” Scaringe said, adding the lack of choices has left Tesla, Inc. TSLA with a highly concentrated market share.
• Scaringe expressed his enthusiasm for the R2 and confirmed the company’s dedication to expanding its product lineup based on this platform.
• The R2 will feature vertically integrated software electronics and offer a seamless user experience and interface.

In after-hours trading on Tuesday, Rivian shares rallied 4.36% to $18.18, according to Benzinga Pro data.

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