Although Rivian (RIVN) and Tesla have different products, they are more alike than you may think. Rivian’s CEO RJ Scaringe said its upcoming R2 model will be its version of the Tesla Model 3.
It may not look like a Tesla Model 3, but Rivian’s R2 will help shape the EV startup’s future. Like Tesla, Rivian started with more expensive flagship models.
Tesla released the Roadster in 2008, which led to the Model S in 2012. Several years later, Tesla announced its first mass-market electric car, the Model 3.
Although Tesla went through what CEO Elon Musk described as “production hell” ramping up the Model 3, the work paid off. In 2018, Tesla’s Model 3 became the best-selling EV globally, holding the title until the Model Y topped it in 2020.
Tesla’s Model 3 will be among the top-selling vehicles globally (gas or electric) in 2023 as it continues to see strong demand.
Rivian has been ramping production all year. Despite several rivals cutting EV targets, Rivian raised its production goal following strong Q3 results. The EV maker now aims to build 52,000 vehicles this year. That’s more than double the 24,337 it produced last year.
Rivian R2 will be its Tesla Model 3 moment
Like Tesla, Rivian plans to expand into new markets. The automaker chose Clayco as its partner earlier this month to build its massive $5 billion EV plant in Georgia.
The new facility will be home to Rivian’s R2 vehicles. Scaringe previously said R2 will start at around $40,000 to $50,000. Rivian’s R2 will be a mid-size electric SUV.
On the How I Built This podcast with Guy Raz, Scaringe recently spoke about ramping production and expanding the brand, as well as other plans for the future.
When asked if R2 will be Rivian’s version of the Tesla Model 3, Scaringe said, “Yeah, in terms of strategically, it’s very similar.”
Scaringe explained that Rivian started with its flagship R1 products that are intentionally priced higher for their features, capabilities, and more.
Rivian will take the “essence of the brand” represented in those products and build it into more affordable models.
The Rivian R2 is expected to be unveiled for the first time next year before launching in 2026. Construction on the Georgia site will begin soon, with grading work finishing up through the end of the year.
An official groundbreaking ceremony is expected in early 2024. Once the first stage is complete, Rivian expects to be able to build 200,000 EVs a year. By 2030, the EV maker looks to double it.
Electrek’s Take
Rivian continues outpacing rivals despite the R1T electric truck and R1S SUV costing around $70,000.
The company also has a major lifeline with its commercial electric van. E-commerce giant Amazon announced in 2019 that it would deploy 100,000 Rivian EDVs by 2030. It has already deployed over 10,000.
The EV maker recently ended its exclusivity with Amazon, signing its second partner in AT&T earlier this month.
Rivian drivers will also get access to Tesla’s supercharger network. Starting early next year, Rivian will provide an adapter, and eventually, it will move to the NACS connector.
The EV maker is taking another page from Tesla with its own charging network. Rivian is focusing on reliability and uptime like the EV leader. Scaringe said having several different charging providers can help adoption. It plans to open its network to other brands like Tesla.
Scaringe said it has around 60 Adventure Network sites live, but there are hundreds more to build.
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The California Air Resource Board (CARB) has withdrawn its request to enact the proposed Advanced Clean Fleets rule, which required fleets that are “well-suited for electrification” to reduce emissions through the phase-in of Zero-Emission Vehicles (ZEVs) and the banning of commercial diesel sales after 2035.
“Frankly, given that the Trump administration has not been publicly supportive of some of the strategies that we have deployed in these regulations, we thought it would be prudent to pull back and consider our options,” CARB chair Liane Randolph said in an interview. “The withdrawal is an important step given the uncertainty presented by the incoming administration that previously attacked California’s programs to protect public health and the climate and has said will continue to oppose those programs.”
Here’s hoping the BEVs and ZEVs have better luck next round.
Electrek’s Take
While some may celebrate the delay of the Advanced Clean Fleets rule, their celebrations will undoubtedly prove to be myopic and short-lived. The reality is that America is no longer the world leader in technology or transportation that backward organizations like the American Trucking Association believe it to be, and the fact is that delaying a transition to cleaner, more efficient technology will only put the US further behind its economic rivals in Asia and the Middle East.
Even before this Pyrrhic victory for American truck brands that have been slow to push BEVs into production, demand for diesel was at a generational low, and companies like Volvo, Renault, and Mercedes-Benz have been logging millions of electric miles on their deployed trucking fleets.
All of which is to say: if you thought it was going to be hard for American brands to catch up before, it’s going to be even harder now.
In an official announcement released at 8:15PM last night, Walmart-backed electric van company Canoo filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code and will cease operations immediately.
“We would like to thank the company’s employees for their dedication and hard work,” said Tony Aquila, Canoo CEO and one of the company’s largest investors (according to the press release). “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”
As a result of the chapter 7 filing, Canoo will cease operations effective immediately, 8:15PM on 17JAN2025. The next step in the company’s dissolution will see a court-appointed trustee manage the liquidation of the company’s remaining assets.
Electrek’s Take
Rumors fueled by outspoken former employees of Canoo began circling late last year, with furloughed employees urging Oklahoma state leaders to “hold the electric vehicle company accountable” after it shuttered the OK production line that had received more than $100 million in state incentives.
The same employee claims that the company was being wildly mismanaged, and that what few Canoo vehicles the company said it had built in the Oklahoma plant were actually built in Texas, and that no vehicles were actually ever built in OK. “Nothing was functioning,” the unnamed employee said, speaking to local news channel KFOR. “There was no, there was not one robotics line that actually worked to fabricate a part.”
You could argue that the employees should also be held accountable for happily collecting paychecks without actually producing anything this whole time, but that’s a conversation for another day. For now, I’ll be mourning the loss of what could have been a fun little domestic off-roader, and hoping Canoo’s employees find a soft landing and better jobs elsewhere.
The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
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