Don’t worry if you want a smaller Rivian that doesn’t cost too much. We will get our first look at the R2 midsize electric SUV early the following year from the company that makes electric cars. Vehicles built on the new R2 platform will gain from lessons learned, new technology and materials that cut costs, and a new plant in Georgia that will make them. How much does the Rivian R2 cost? Rivian CEO RJ Scraringe told investors on a call to talk about the company’s third-quarter results that the R2 midsize SUV would come out in 2026 and cost between $45,000 and $50,000. With this price range, there are few options. Rivian’s first global platform will be based on the bigger R1 platform, which powers the R1T electric pickup truck and the R1S SUV. The company has learned a lot from that platform. Scaringe says that cars built on the R2 platform will be made at a brand-new factory in Georgia. Work on the factory will start in early 2024, and when it starts making cars in 2026, it will have a much lower cost structure. Rebuilding the Rivian R1 Plant Rivian is doing a lot of work to make the R1 platform better before the R2 platform comes out. The R1T and R1S are made in a plant in Normal, Illinois. The factory will be closed for one week in December to make preparations for retooling in the second quarter of 2024. When the mill reopens, the cars will have new technology and be more streamlined. The wiring harnesses will be 25% shorter, the control units will be built into the body, and the battery pack and body structure will be better. The cost will go down by 35% because the materials will be cheaper and the assembly will be easy. Soon, you’ll be able to get Rivian R1T and R1S Trims The R1 base is also getting bigger. The R1T and R1S were shown off, with their huge battery packs and quad-motor powertrains. Rivian then added the dual motor and the max pack, which is the biggest battery and has a range of about 410 miles. Scaringe says that Rivian will offer more than one trim level and build option next year in addition to the basic (smallest) battery pack. Entry-level options will make the cars more affordable. Later this month, Rivian will also start hiring some cars in some places before making the program available everywhere. The company is adding more mobile service trucks to its fleet, which already has 408 vehicles that go to customers’ homes to do repairs there. Scaringe thinks that Rivian will keep putting money into its fleet and growing it and that this method will handle three-quarters of all service calls. Rivian is building its system for charging. There are 57 fast chargers right now, and that number will quickly go up. Another deal with Amazon The Normal site also makes 10,000 delivery vans for Amazon, which is using them to finish an order for 100,000 cars. But Scaringe says Rivian has changed the terms of the exclusive agreement so he can now sell to other clients. He is talking with a lot of big fleet owners right now about pilot programs, and soon they will be public. Through pilot programs, customers can try out the cars, customize them to meet their needs, and set up infrastructure and charging stations before they buy a lot of them. The CEO says that a lot of business will happen in 2025. Rivian now thinks that 54,000 vehicles will be made in 2023, which is 2,000 more than they thought before. Thanks to changes made to the Illinois plant, the company can now make 150,000 cars a year, which includes 85,000 R1 sedans and 65,000 commercial vans. Last year, Rivian lost about $140,000 per vehicle. In the third quarter, they lost about $30,600 per vehicle. Since there aren’t as many supply problems, output can now be doubled, and costs are still going down. The company made $1.4 billion on $1.34 billion in sales in the third quarter, but it still needed money.
