Rivian CEO calls $48K the sweet spot for EV prices, says R2 will rival Tesla’s Model Y
Rivian looks to expand the brand with its more affordable R2 electric SUV. Ahead of the R2’s official debut, Rivian’s CEO RJ Scaringe called $48,000 an “important sweet spot” for buyers switching from gas vehicles. Scaringe also said the upcoming R2 will compete in the same market as Tesla’s best-selling Model Y.
Rivian CEO calls $48K the sweet spot as R2 launch looms
In a new interview with Forbes, Scaringe explained Rivian’s ambitions of going mass market. “The average transaction price of a vehicle, any vehicle in the United States, is around $48,000.”
Scaringe explained, “We think that’s a really important sweet spot, to be in that range, to create a viable option for customers that are coming out of combustion-powered vehicles.”
Being competitive on cost is becoming increasingly essential as price cuts from leaders like Tesla are pressuring others to follow suit. Earlier today, Ford announced it was cutting the price of the Mustang Mach-E and introducing new incentives for the Lightning electric pickup.
Rivian introduced new Standard battery pack options for the R1T and R1S earlier this month, dropping the starting prices to $70,000 and $75,000, respectively.
According to Cox Automotive data, the average price of an EV at the end of 2023 was $50,798. That’s within $2,040 of the average gas-powered vehicle at $48,795. Tesla was even closer at an average transaction price of $50,051.
R2 will “greatly expand” the brand
Rivian’s CEO said more unique EVs are needed. “Products available in the market today cover a very small subset of the segments,” both in price and form.
Scaringe chalked up the reported “slow down” in EV demand as “more a reflection of a lack of product choice.” Despite confirming that R2 will be smaller than the R1S and will meet the battery requirements for the $7,500 EV tax credit, Scaringe did not offer any new details.
Rivian’s CEO said R2 will capture “the essence of what makes a Rivian a Rivian” in a smaller, more affordable package.
According to Scaringe, R2 will compete in the same segment as Tesla’s top-selling Model Y. Leading up to its official debut, Rivian gave us our first look at the R2 in a new teaser video.
Shortly after, the R2 was reportedly spotted filming in downtown LA. The images show what appears to be a smaller electric SUV sitting next to the R1S, aligning with previous findings.
A patent filed by Rivian last month revealed a more compact electric SUV with slightly smaller headlights and rear quarter panels.
Scaringe said the R1 vehicles introduced Rivian to the world, but “R2 greatly expands the relevance of Rivian to a much broader set of consumers.” Rivian’s CEO said he’s “never been as excited” about a project as he is for R2.
R2 will be built at Rivian’s second manufacturing plant in Georgia. It will be a smaller, more affordable electric SUV with starting prices around $45,000.
Rivian will officially reveal the new R2 at its new Laguna showroom on March 7, 2024, at 10 am PST. You can check back here for the full details.
Electrek’s Take
Rivian’s R2 comes at a key time as the EV maker looks to take the brand mainstream. The R1S and R1T were designed as flagship products to put Rivian on the map and generate some cash flow.
Now, R2 is set to expand the brand. Rivian has already established itself as a luxury EV maker. Now, the R2 will help unlock an entirely new segment of buyers.
Ed Kim, president of industry consultant AutoPacific, said the R2 is happening at a good time as EVs are reaching mainstream customers. Kim explained as “EVs are becoming more relevant to mainstream consumers, here comes this much more mainstream-priced R2 that’s a lot more attainable and affordable.”
Although Scaringe said R2 will rival Tesla’s Model Y, it will likely take share from gas-powered vehicles like the Ford Bronco, Subaru Forester, Chevy Traverse, and Jeep Compass.
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It feels like e-bikes powered by Bosch’s popular mid-drive electric motors have been around in just about every market for as long as many of us can remember. But there are still major markets getting their first taste of the highly-engineered drivetrains. Bosch’s mid-drive motors are now entering Taiwan, rolling in on Tern’s Vektron and Quick Haul e-bikes.
While Tern’s mastery of the Western e-bike markets has led many to assume they are a North American or European brand, the company is actually based in Taiwan.
Their Bosch-powered e-bikes carry an esteemed international reputation for quality and longevity, but so far the company’s domestic market has only had access to its folding and non-electric bikes (I’ve often drooled over the Tern BYB, which offers a design that looks like if Brompton ratched up the style knob several clicks).
Now Tern is launching the Vektron and Quick Haul e-bikes in Taiwan, and in doing so, is bringing the first Bosch-powered electric bikes to the island.
“Taiwan is the global epicenter for quality bicycles and the country has come so far in promoting bikes for recreation and transport,” stated Josh Hon, Tern Team Captain. “With a large portion of Tern Team Members calling Taiwan home, it was easy for us to raise our hands when Bosch suggested entering the Taiwan market. Our bikes also make the most sense for dense cities like Taipei where a compact e-bike is easier to ride and store.”
The Tern Vektron is an ideal urban city e-bike thanks to its tight-folding frame design, which is more compact than most folding e-bikes in its class. These types of folding e-bikes are a common sight in major European capitals where portability is key.
The Vektron is a convenient option for commuters who need to ride to the train station and then fold their e-bike to carry onboard with them into the city.
For those riders who use e-bikes more as a family vehicle than an individual commuter, the Tern Quick Haul offers more cargo and kid-hauling opportunities. Having tested the Quick Haul myself, I can confirm that it’s definitely a car-replacing electric bike thanks to its go-anywhere and carry-anything vibe.
The Quick Haul’s form factor is key, with the company describing it as “brawny enough to safely ferry a passenger or handle 150 kg (330 lb) of load, the Quick Haul is still smaller than a standard city bike.”
Both bikes also feature Bosch powertrains, meaning they sport the complete motor, battery, console, and drive system package.
Electrek’s Take
When I first heard this news, I was surprised to find out that Taiwan didn’t have any Bosch-powered e-bikes yet. After all, Josh Hon is exactly right – it’s the epicenter of the higher-quality e-bike industry. But on second thought (and after a recent trip to Taiwan), I remembered that I didn’t actually see as many e-bikes on the road as I expected, since most two-wheeled commuters seem to love scooters there. Those great bike parts originating in Taiwan are mostly being exported.
Sure, there were certainly many of the types of e-bikes we think of here in the West, and I was impressed with the number of bike lanes around Taipei, but there weren’t the droves of e-bikers like you’d see in Berlin or Amsterdam. Instead, scooters dominate the streets.
But perhaps that’s because they haven’t yet had access to the type of Bosch-powered e-bikes that Berliners treat as their daily drivers. I’m sure I saw just a snapshot in time, and it’s great to hear that the trend is moving upwards towards higher rates of cycling. I guess we’ll have to check back again this time next year to see if Bosch-powered Tern bikes become a common sight on the streets of Taipei!
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Stories we discuss in this episode (with links)
Why gas bikes just can’t compete with electric motorcycles in the summer
Tesla’s next-gen Dojo AI training tile is in production
The US just proposed 18 GW of new offshore wind sales
There’s a new trend making electric bike batteries safer
Toyota goes large on hydrogen with new US headquarters
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