Rivian (RIVN) CEO warns of ‘messy’ Q2, talks R2 and Tesla NACS
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.
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 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’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.
“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.”
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.
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 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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Honda announced that it is pausing about $15 billion in planned EV investments to build electric vehicle and battery factories in Canada amid uncertainty over trade.
It’s the latest example of Canada’s backing the US plan backfiring.
A few years ago, Canada sided with the US in its plan to save the US auto industry, which was falling behind the rest of the world in the transition to electric vehicles.
Canada agreed to heavily tariff Chinese EVs to keep them away from the North American market, which mainly helps the US auto manufacturing industry, and in return, Canada’s EV production was included in Biden’s IRA to encourage foreign automakers to invest in EV production in both US and Canada to get access to the US market.
However, when Trump came into power earlier this year, he threw a wrench into this entire plan by canceling IRA funding, planning to kill the EV tax credit, and placing tariffs on many countries, including Canada.
It has resulted in planned investments in the EV sector in Canada to cool down.
Now, one of Canada’s most significant EV investments has been paused.
Honda has announced that it is pausing for two years its plan to establish a massive new EV production base in Canada:
“Due to the recent slowdown of the EV market, Honda Motor has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada. The company will continue to evaluate the timing and project progression as market conditions change.”
The investment was announced just over a year ago. It was supposed to include a new EV factory in Ontario and a battery factory, totaling more than $10 billion in investments.
It was supposed to create over 1,000 jobs in Ontario and help retain the 4,200 jobs at Honda’s current assembly plant in Ontario, which are threatened by the electric transition.
Electrek’s Take
Canada is taking a beating here and all for mostly just protecting the US auto industry.
As I have been saying for a while, at this point, you should just invite the Chinese automakers to join.
You can do a deal à la India, where you remove tariffs for Chinese automakers willing to invest in the EV supply chain in Canada.
There’s no point in protecting the US automakers if the US is purposefully destroying the Canadian auto sector.
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A new company out of Germany called ONOX is bringing sustainable technology to the agriculture industry. After garnering design awards, the ONOX electric tractor prototype is in operation overseas as its makers look to scale and bring its unique modular design, complete with swappable battery packs, to farms everywhere.
It’s been less than two years since ONOX hit the tech scene with a prototype of its flagship electric tractor, which debuted at Agritechnica 2023 in Hanover, Germany. In April of 2024, the German startup’s electric tractor was awarded an iF Design Gold Award.
That same summer, the ONOX1 finalized commissioning before entering an extensive test phase. By December, the startup had snagged another trophy – the Federal Ecodesign Award. This past February, the ONOX electric tractor received road approval in Germany and began operations while the design team continues its mission of making electric agricultural machinery a reality.
The ONOX electric tractor is unique in that it utilizes modular battery swap technology, in which farmers can choose from three different mounting areas (see below).
ONOX’s electric tractor could breathe new life into farming
Since the ONOX electric tractor remains a prototype, many of its specs are targets and estimates, but the initial design is quite impressive. The electric tractor’s motor offers peak power of 70 kW with over 2,400 Nm of torque up front and over 5,500 Nm in the rear. ONOX’s targeted top speed is 40 km/h (~25 mph).
The ONOX tractor features an integrated 20-kWh battery pack and room for additional swappable packs of 30 kWh each. The entire system operates on 48V power, so maintenance is safer and easier for users without further training since there is no risk of exposure to high-voltage components.
The ONOX design team has also integrated an Airline system with mounting rails on the tractor’s hood, enabling future owners to mount cargo, haul hay or produce, or customize the area with other parts. The front of the tractor is also front-loader-ready, adding to its modularity and versatility.
The ONOX website says the electric tractor is self-sufficient using its own solar energy, but from the specs and images we’ve seen, there is no evidence of any solar technology implemented on the current prototype. Perhaps they mean the swappable batteries can be charged using solar when not installed on the tractor.
We will monitor ONOX’s progress as electric tractor development continues en route to commercial sales.
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Toyota upgraded its electric SUV in just about every way possible. The 2026 Toyota bZ is refined from end to end with a fresh new style, more driving range, advanced new tech, and much more. It even has an NACS port, so you can charge at Tesla Superchargers. Here’s our first look at Toyota’s new EV.
Meet the 2026 Toyota bZ electric SUV
Remember the bZ4X? It’s currently the only EV Toyota sells in North America. It’s now called the “bZ,” and it’s better than ever.
The 2026 Toyota bZ has an estimated driving range of 314 miles, a 25% improvement over the outgoing bZ4X. It also has a built-in NACS charging port, unlocking access to Tesla’s vast Supercharger network across North America.
Toyota said the upgraded EV can charge from 10% to 80% “under ideal conditions” when using DC fast charging. With added Plug & Charge capabilities, charging has never been easier.
The AWD models now have up to 338 hp, a 50% improvement thanks to new SIC semiconductors. Front-wheel-drive (FWD) models deliver 221 hp, up from 201 HP in the 2025 bZ4X.
Other upgrades, including battery pre-conditioning and a thermal management system, help optimize charging speeds in cold weather.
Battery options and driving range
The 2026 Toyota bZ will have two battery options: 57.7 kWh and 74.7 kWh. Toyota estimates that the larger (74.7 kWh) battery will provide up to 314 miles of range, while the smaller (57.7 kWh) option will get up to 236 miles.
Toyota upgraded the electric SUV inside and out. The exterior features Toyota’s new “hammerhead front end,” which is shown on updated vehicles like the Camry and Crown. The new styling includes redesigned front overfenders and slim LED daytime running lights.
The interior received a few upgrades, including a redesigned center console. The setup now includes a larger 14″ Toyota Audio Multimedia touchscreen, two wireless phone chargers, and a slimmed-down dashboard.
Standard features include a 7″ driver display screen, heated front and rear seats, regenerative braking, Toyota Safety Sense 3.0, and more.
Upgrading to the Limited trim will gain you 20″ black alloy wheels, multi-LED headlights, SofTex®-trimmed seats, ventilated front seating, and added safety/ driver assist features. Other options include a panoramic moonroof with power sunshade (XLE) and a premium 9-speaker JBL Audio system (Limited).
.
| 2026 Toyota bZ trim | Battery | Range (Manufacturer estimated) |
| XLE FWD | 57.7 kWh | 236 miles |
| XLE FWD Plus | 74.7 kWh | 314 miles |
| XLE AWD | 74.7 kWh | 288 miles |
| Limited FWD | 74.7 kWh | 299 miles |
| Limited AWD | 74.7 kWh | 278 miles |
According to Toyota, the new name will help simplify things for buyers. We suspect it’s also designed to revamp the brand’s sole EV after a slow (to say it nicely) rollout in North America. The bZ4X was recalled shortly after launch over concerns that the wheels may fall off.
The 2026 Toyota bZ is expected to arrive at dealerships in the second half of 2025. Check back for more info as prices will be revealed soon.
With the upgraded 2026 model arriving, Toyota is offering close-out prices on the 2024 and 2025 bZ4X. The 2024 bZ4X is listed with up to $19,000 in lease cash, while 2025 models can be leased for as low as $269 per month. You can use our link to find deals on the 2024 and 2025 Toyota bZ4X in your area today.
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