Rivian (RIVN) will reveal its R2 SUV on March 7, according to a post on X. The R2 is supposed to be smaller and cheaper than the EV maker’s current offerings. Yahoo Finance‘s Pras Subramanian, Josh Schafer, and Alexandra Canal discuss the new offering and what it means for Rivian.
Editor’s note: This article was written by Stephanie Mikulich
Video Transcript
PRAS SUBRAMANIAN: I’ve been looking at Rivian. The EV maker confirming on Twitter it will reveal its next generation EV in March, the R2. This is going to be Rivian’s cheapest and most efficient model yet. But the crucial part is, Rivian wants to produce it at scale. They have to, they justify their existence as a company, or somewhat like a Model Y type of vehicle, in that $45,000, $50,000 price range.
Should be a high volume seller when it comes out in 2026, which again, is down the line, and that’s because they’ve got to build a new factory for it. So I think that’s the bullish play here is, can they actually get this thing done, and then emulate Tesla in terms of getting that volume car out there and making a lot of money.
JOSH SCHAFER: I get Rivian wanting to do this obviously from a business standpoint and for them to, as you said, continue to grow and be successful, it makes sense for Rivian. I just wonder, Pras, based on the conversations we’ve had, the EV poll that you ran on our website, and we’ve discussed in this segment before, are you just, is there demand at that, what did you say, $45,000 to $55,000 range, ish?
I’m wondering how big the demand is for EVs there. Like how many people want an EV there? How many people are familiar with the brand Tesla? That makes them willing to buy it. Are you going to want to buy from a pure play like Rivian that you don’t know? I just think there’s a lot of questions there when it comes to that.
PRAS SUBRAMANIAN: I think Elliot had a really good point, we were taking about this earlier.
ALEXANDRA CANAL: I was going to say, Pras, and I were talking in the commercial break, and I was going to say, I actually think the timeline is in Rivian’s favor, right?
JOSH SCHAFER: Because it’s later?
ALEXANDRA CANAL: It’s later.
JOSH SCHAFER: Sure.
ALEXANDRA CANAL: So you have the infrastructure coming on later, perhaps EV adoption picks up as the mileage improves, the pricing improves, so I actually think that there could be more demand down the line. Because that’s always been the issue, right? Is that, I think EVs are going to be the future. I think at a certain point, we’re not going to have gas cars. It’s just a question of when, and how quickly we get there. But I think time is on your side if you’re on EV.
ALEXANDRA CANAL: Right. By 2026, there’ll be like four chargers in 100 mile radius for me to plug-in at, right?
PRAS SUBRAMANIAN: Yeah. Sorry, I’m quoting TV’s Alec Nolan in my next R2 story, right? That’s the right, that’s the right trade.
ALEXANDRA CANAL: [LAUGHS] Heck yeah. Yeah, just put me on the EV beat, you know. But–
PRAS SUBRAMANIAN: Woah.
[LAUGHTER]
ALEXANDRA CANAL: Could never take over your spot.
