EV startup Rivian (RIVN) is gearing up to accelerate production of its first electric SUV, the Rivian R1S, with robust demand going into next year.
Rivian’s CFO Claire McDonough explained during an interview with Deutsche Bank that the company is seeing strong demand despite the economic environment.
McDonough discussed Rivian’s production ramp and how the startup plans to achieve positive gross margins by the second half of 2024.
Although supply chain issues have been an ongoing issue in the industry, Rivian is seeing some relief. Their biggest problem was access to power semiconductors, which the company is overcoming with new in-house technology like its Enduro drive units.
Rivian’s CFO says the Enduro production ramp is ahead of schedule. As mentioned during its Q1 earnings, Rivian introduced the drive units and LFP battery packs into its electric delivery vans (EDVs) for Amazon insuring the quarter.
A few weeks ago, Rivian built its first saleable R1 series model fitted with the Enduro drive unit. Rivian expected the transition to slow production in the first quarter, with 9,395 units built. However, it anticipates the pace to pick up in the second half of the year as it works to reach its 50,000 target.
The R1S SUV (Source: Rivian)
Rivian to focus on R1S production as demand climbs
McDonough said Rivian continues to see a “robust backlog of preorders that extends into 2024.” Although it has seen some impact from the broader economic implications regarding daily order rates, it has maintained stable demand.
With the ability to now order a Rivian R1T model and have it delivered in less than two weeks (it’s also offering same-day deliveries on R1T day, June 17), Deutsche Bank‘s Emmanuel Rosner asked if the company had the flexibility to shift production to get R1S models into customers’ hands quicker.
Rivian R1T (Source: Rivian)
McDonough explained the R1T was Rivian’s first model, so they have had more time to focus on the production ramp. For the first time in Q2, the R1S will take the bulk of the volume.
Rivian is seeing higher demand for the R1S, with about 70% of the company’s preorders, so the company is beginning to prioritize production to resolve the demand imbalance.
More importantly, Rivian’s CFO says no specific bottlenecks limit the transition, and most models being built today are R1S.
The company is still working through pre-March 1, 2022, preorders at the moment, but over the year into 2024, they will begin later orders. McDonough explains rolling out the new Enduro units will help them work through the backlog.
The company expects a few weeks of downtime next year as it introduces new technology to improve efficiency and cut costs, including its next-gen network architecture, LFP battery tech, high nickel batteries, and a simplified manufacturing process.
Rivian R1S (Source: Rivian)
Rivian’s CFO touched on another few key points during the interview, including its upcoming R2 series, set to be unveiled early next year. The R2 models will offer Rivian’s adventure theme at an affordable ($40,000 to $60,000) price range.
When asked if Rivian would follow Ford and GM in adopting Tesla’s NACS, McDonough said the company is excited for more people to have access to high-quality charging while it remains open to partnerships.
Electrek’s Take
Rivian was one of the few EV startups that maintained its production target this year after the first quarter.
The company continues reducing complexity while introducing new technology to improve efficiency and profitability. Sources recently told Electrek that Rivian was in talks to acquire Swedish-based EV route planning service A Better Route Planner (ABRP), which will likely greatly improve its software and navigation capabilities as well.
Moving to R1S production could be a sign of weakening demand for pickups, or perhaps the SUV is simply attracting more buyers. We’ll find out more over the course of the year as Rivian continues expanding its brand and working towards turning a profit. For those R1S reservation holders, your time is coming soon.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new ONYX RCR 80V electric moped, new lightweight e-bike motors, Aventon’s powerful update, California cops catching illegal e-bike riders with drones, a super lightweight new e-bike from Dahon, and more.
Today’s episode is sponsored by CYCROWN, an e-Bike company born from a passion for cycling. Its lineup now includes the new CYCROWN Dremax – a high-performance urban commuter e-bike now on sale in the US and Canada. Use Electrek50 to save $50 off your new eBike when you order.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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While much of the Western world is still figuring out how to get more people on electric bikes, China just flipped a switch, and the results are staggering. Thanks to a generous nationwide trade-in program rolled out around six months ago, China has seen an explosive surge in electric bicycle sales, with over 8.47 million new e-bikes hitting the road in the first half of 2025 alone.
The program, which offers subsidies to riders who trade in their old, often outdated electric bikes for newer, safer, and more efficient models, has sparked a new e-bike sale boom in a country already dominated by e-bike travel. In major provinces like Jiangsu, Hebei, and Zhejiang, over one million new e-bikes were sold in each region in just six months. That’s a tidal wave of e-bike sales.
The incentives vary depending on location and the model being traded in, but for many consumers, the subsidies cover a substantial portion of a new e-bike’s price – enough to turn a “maybe next year” purchase into a “right now” upgrade. And these aren’t just budget bikes either. The program has driven demand for higher-quality models with better batteries, safer braking systems, and more reliable electronics, accelerating both adoption and innovation across the industry.
The move has proven successful in replacing the millions of older models with lower-quality lithium-ion batteries that had posed safety risks around the country. Instead, China has pushed for higher-quality lithium-ion batteries, a return to a newer generation of higher-performance AGM batteries, and even interesting new sodium-ion battery options.
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Most e-bikes in China look more like what we’d consider seated scooters
According to China’s Ministry of Commerce, more than 8.4 million consumers have participated in the e-bike trade-in program so far, contributing to a sales increase of 643.5% year-over-year and more than doubling sales month-over-month. Meanwhile, production of new electric bicycles rose by nearly 28%, as manufacturers scrambled to meet demand. The sales boosts have already been seen in the financial reports of major industry players like NIU.
And it’s not just the big players benefiting – over 82,000 small independent e-bike dealers reported average sales increases of ¥302,000 (around US $42,000), giving a serious boost to local economies.
What’s particularly striking here is how fast this happened. The program was officially launched late last year as part of a broader effort to stimulate domestic consumption and phase out outdated vehicles and appliances. But while most analysts expected gradual growth, the e-bike sector responded much more quickly. In less than a year, the trade-in subsidies have reshaped the electric bicycle market, creating a consumer-driven boom that shows no signs of slowing.
For those of us watching from outside China, it’s hard not to wonder what might happen if other countries tried something similar. While most families in Chinese cities already own an electric bike and thus see this as an opportunity to trade it in for a newer model, Western countries like the US are still figuring out how to stimulate commuters into buying their first e-bike.
It’s too soon to know exactly how long the boom will last or whether the momentum will carry into 2026 and beyond. We’ve seen bicycle industry bubbles grow and burst before. But one thing’s clear: with the right incentives, even modest ones, it’s possible to ignite real, large-scale change. China just proved it with nearly 8.5 million new e-bikes to show for it.
And if you’re wondering what it looks like when a country takes electric micromobility seriously, this is it.
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Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!
In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.
Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.
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