California-based electric vehicle manufacturer Rivian Automotive Inc RIVN unveiled its new R2 SUV and its upcoming R3 crossover on Thursday. These additions give Rivian a comparable range in price range to its larger rival, Tesla Inc. TSLAwith the exception of the exclusive Cybertruck.
Rivian’s expanding lineup:
Rivian’s current offerings include the R1T electric truck, the R1S SUV, the smaller, more affordable R2 SUV, and a preview of the R3 crossover. The company also produces electric vans for commercial customers.
Tesla sales price targeting:
R1T and R1S are aimed at the higher end of the electric vehicle market. The R1T starts at $69,900 (excluding taxes and fees) and the R1S starts at $74,900, placing them near Tesla’s premium offerings, the Model X ($79,990) and Model S ($74,990).
R2 enters Model Y territory:
The newly unveiled R2 SUV is a smaller, more compact version of the R1S, with a starting price of around $45,000. This competes directly with Tesla’s Model Y, which starts at $43,990.
R3 aims for convenience, planned performance variant:
The company also introduced the R3 crossover, which will be priced lower than the R2 and whose deliveries will begin after the R2. Similar to Tesla’s Model 3 ($38,990), the R3 will also have a performance variant called R3X. It’s unclear whether the R3’s price will be lower than the Model 3’s or stay in the same range.
The cybertruck gap:
While Rivian now has competitive offerings across most of Tesla’s lineup (based on vehicle type and price), the Cybertruck remains unchallenged. While Rivian’s R1T truck is in the price range of the all-wheel-drive version of the Cybertruck, it lacks the Cybertruck’s unconventional angular design and stainless steel exterior. The Cybertruck’s unique aesthetic has attracted celebrity buyers such as Jay Z AND Beyoncéand its high-end version reaches a price point (over $100,000) not yet explored by Rivian.
Musk’s skepticism and Rivian’s design potential:
CEO of Tesla Elon Musk remains skeptical about Rivian’s long-term prospects. In February he predicted Rivian’s “failure in about six quarters” based on their current trajectory. However, he acknowledged that Rivian’s product design has “not bad” potential.
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To know more: Rivian halts construction of Georgia plant and will launch R2 SUV at Illinois plant – Ross Gerber calls it the ‘right strategy’
Photo courtesy: Rivian