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After shutting down its plant for upgrades, EV maker Rivian (RIVN) is warning that Q2 could be “messy.” Rivian’s CEO, RJ Scaringe, warned that Q2 will be messy at a fireside chat Thursday. Scaringe also discussed Tesla NACS adaptors and Rivian’s upcoming R2 and R3 vehicles.

Rivian has already accomplished a lot since its first vehicle, the R1T, rolled off the production line in 2021.

After Rivian’s vehicle sales doubled last year (YOY), topping 50,000, the EV maker is ready to enter its next growth stage. However, like the past few years, the road to get there likely won’t be smooth.

The luxury EV maker is already making a name for itself as the fourth best-selling electric car maker in the US. Rivian’s R1S electric SUV is the best-selling large SUV, electric or gas, in California.

According to Kelley Blue Book data, it was also the fourth best-selling EV in the US during the first three months of 2024. The R1S was only behind Tesla’s Model Y, Model 3, and the Ford Mustang Mach-E.

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Rivian R1S (Source: Rivian)

Despite the success, Rivian expects a slowdown in the second quarter. Rivian shut down production at its Normal, IL facility last month to “implement a whole host of changes,” according to Scaringe.

The upgrades “introduced a dramatic cost reduction in material costs,” Rivian’s CEO and Founder explained. Due to the shutdown, Scaringe warned that Q2 “is going to be messy.”

Rivian-messy-Q2
Rivian production at its Normal, Ill facility (Source: Rivian)

Rivian braces for a messy Q2 earnings

At Bernstein’s 40th annual Strategic Decisions Conference Thursday, Scaringe said 2024 is a big year for Rivian with new R1 updates and cost improvements.

Despite being on a trajectory toward healthy positive gross margins in 2025, Rivian is still in the red to date.

Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24
Rivian loss per vehicle $139,277 $124,162 $67,329 $32,594 $30,500 $43,372 $38,784
Rivian loss per vehicle by quarter

Rivian’s gross vehicle margins narrowed slightly to a $38,784 loss per vehicle in Q1 from a $43,472 loss per vehicle in Q4. However, gross margins are still higher than the $32K and $30K loss in Q2 and Q3 2023, respectively.

Although new supplier negotiations and production upgrades are expected to drastically lower Rivian’s bill of materials into 2025, the shutdown will significantly impact Q2 earnings.

Scaringe warned, “From an investor perspective, the second quarter’s going to be messy” due to the month-long shutdown.

Rivian-R2
Rivian R2 (Source: Rivian)

“We will deliver a very small percentage of these newer vehicles [in terms of cost] in Q2,” Scaringe explained. “You won’t see a lot of those benefits until you get to Q3.”

Meanwhile, Scaringe added that the upgrades are “contractual.” Rivian isn’t “hoping or wishing costs were lower,” these have been negotiated with suppliers over the last 24 months.

Rivian added 100s of new robots for automation and increased the line rate by 30%. It also went from “41 components in the battery pack down to 16.”

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Rivian R1S production (Source: Rivian)

Scaringe said these improvements alone will create more efficiency and fewer hours per unit. In other words, the cost of goods sold is also being reduced.

Tesla NACS adoption and upcoming R2/R3

Rivian revealed its next-gen R2, a smaller and more affordable EV, in March. Scaringe also shocked the industry by introducing an even smaller and lower-cost R3 model.

Scaringe said the new models will greatly expand Rivian’s addressable market. The R2 will start in the “mid-$40,000s” compared to Rivian’s current $90,000 ASP.

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Rivian R2 (Source: Rivian)

The R2 still “embodies the essence of Rivian,” Scaringe said, but Rivian had to make “trade-offs” to keep prices low. Some trade-offs could include features, content, and performance, but Scaringe doesn’t expect to impact customers too negatively.

For example, the R2’s suspension uses a strut, which is a lower-cost feature than what you find on the R1. The doors are also simpler, with a single piece of glass.

Scaringe said, “Every part must earn its way on the vehicle,” as it cuts costs. Rivian’s CEO explained that the R2 is not out to compete with Tesla’s best-selling Model Y; it is “competing with the 92% of customers who haven’t decided to go electric.”

Rivian-R3-design
Rivian R3X (Source: Rivian)

Rivian is expected to begin R2 production at its Normal, IL facility in the first half of 2026. Scaringe said the R2 scored over 68,000 reservations in less than 24 hours.

After Rivian began shipping R1 owners Tesla NACS adaptors last month, Scaringe said there was a shortage, but “those are shipping now.”

Scaringe added, “Over time, we will be switching to the NACS connector, along with moving our charging network over to that.” Rivian expects to incorporate NACS charge ports in R1T and R1S vehicles as standard in 2025.

Rivian owners can now access over 15,000 Tesla Superchargers, in addition to the 16,000 existing fast chargers they already have access to.

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The Eastern US’s first CFI-funded EV charging hub comes online

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The Eastern US's first CFI-funded EV charging hub comes online

The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.

The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.

These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.

The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.

Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:

Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.

In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.

The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.

Read more: The US reaches milestone of 200,000+ public EV charging ports


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Kia’s new low-cost EV4 was just spotted in the US for the first time

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Kia's new low-cost EV4 was just spotted in the US for the first time

Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.

The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.

During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.

Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.

The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.

Kia's-EV4-US
Kia EV4 (back) showcased alongside (from left to right) the EV9, EV3, EV5, EV4, and EV6 (Source: Kia)

Kia’s new EV4 is now testing in the US

Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.

The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.

Kia EV4 caught on US streets for the first time (Source: KindelAuto)

Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).

Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.

Kia's-EV4-US
Kia EV4 concept (Source: Kia)

The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.

Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.

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Kia EV4 concept interior (Source: Kia)

We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.

Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?

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Nissan unveils sleek new N7 electric sedan to reverse slumping sales in China

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Nissan unveils sleek new N7 electric sedan to reverse slumping sales in China

Nissan introduced its newest EV, a sleek all-electric sedan, at the Guangzhou Auto Show this week. The N7 is the first Nissan electric vehicle under its new strategy to spark life back into the brand in China.

Nissan hopes new N7 EV can compete in China

Like most foreign automakers, Nissan is struggling to stay afloat in China as homegrown automakers, like BYD, take control of the market.

Nissan hopes to turn things around after Dongfeng Nissan, its Chinese JV, unveiled the new N7 EV sedan at the Guangzhou Auto Show on Wednesday. The N7 is the first next-gen Nissan EV aimed at China as it looks to regain ground in the world’s largest electric car market.

Nissan claims the new model will “redefine the new benchmark for China’s mainstream family pure electric sedans.” It will be the first model built on Dongfeng Nissan’s new dedicated EV platform.

The company promises the new platform offers “a stress-free driving experience, superior comfort, and a suite of intelligent technology.”

At 4,930 mm long, 1,895 mm wide, 1,487 mm tall, with a wheelbase of 2,915 mm, the N7 is slightly longer than the Tesla Model 3 (4,720 mm long, 1848 mm wide, 1,442 mm tall, 2,875 mm wheelbase).

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Nissan N7 electric sedan (Source: Dongfeng Nissan)

You can see Nissan’s signature V-Motion design in the headlights and front bumpers. Inside, the N7’s infotainment system is powered by a Qualcomm Snapdragon 8295p processor for a faster, seamlessly connected system.

Nissan also partnered with smart driving tech leader Momenta to offer an advanced driver-assist system called “Navigate on Autopilot.” The N7 will be equipped with high-speed navigation NOA, city memory navigation NOA, and full-scenario intelligent parking.

The new N7 EV is set to go on sale in China in the first half of 2025 as Nissan aims to regain relevancy. Nissan’s sales in China fell 5.4% through the first nine months of 2024 after crashing 33% in 2023.

Will the N7 help Nissan reignite the brand in China, or will it continue losing ground to domestic auto brands like BYD and NIO? Let us know what you think of the electric sedan in the comments below.

Nissan isn’t the only legacy automaker developing specific EVs for China. Hyundai is launching a new AI-powered EV in China next year as it looks to counter China’s surge.

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