Rivian CEO RJ Scaringe Positions R2 As Tesla Model 3 Challenger: 'Strategically, It's Very Similar'

Rivian Automotive, Inc. -2.27%
Tesla Motors, Inc. -1.92%

Rivian Automotive, Inc.




Tesla Motors, Inc.




Rivian Automotive Inc (NASDAQ:RIVN) CEO R.J. Scaringe sees its upcoming R2 vehicles as the equivalent of Tesla Inc‘s (NASDAQ:TSLA) more affordable offerings.

What Happened: Tesla began its journey with the 2008 Roadster, a high-end sports car, followed by the Model S luxury sedan, and later, more budget-friendly models. Similarly, Rivian introduced its R1T truck and R1S SUV, positioned at higher price points exceeding $70,000.

“Strategically, it’s very similar,” Scaringe said in an interview with Guy Raz on his ‘How I Built This' podcast when the anchor mentioned that the company’s Rivian R2 reminds him of Tesla with its Model 3.

"Now we are taking the essence of the brand represented by those products and building that into something at a lower price point," Scaringe said.

During the third-quarter earnings call, CFO Claire McDonough announced that R2 platform production would commence in 2026, with product unveilings expected in early 2024.

“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, highlighting the limited options and concentrated market share held by Tesla, whose Model 3 starts at $38,990, while the Model Y begins at $43,990.

Why It Matters: As of the end of the third quarter, Rivian had delivered 15,564 vehicles, coming remarkably close to Tesla's 15,985 Model S and X vehicle deliveries worldwide—a difference of just 421 units.

Rivian reported third-quarter revenue of $1.337 billion and a quarterly loss of $1.19 per share, surpassing analyst estimates of $1.32 per share. For the whole year, it expects to produce 54,000 vehicles.

Earlier this month, it was reported that the company trimmed its future battery technologies team by nearly 8% as it focused on R2.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: Ford’s F-Series Comeback: 700K Sales Breaks 4-Year Growth Drought Despite Stormy 2023

Image made via photos on Flickr and Shutterstock

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