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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A groundbreaking new Virtual Power Plant Power Purchase Agreement (VPA) provides Texans with solar panels and two 20 kWh sonnen batteries at no upfront cost.
A new sonnen storage + solar VPP for Texans
SOLRITE Energy, which finances solar and battery storage, and global battery storage manufacturer sonnen today announced the launch of their new VPA in Texas’s ERCOT market. This program offers solar and battery storage for homeowners at an affordable monthly rate, making backup power accessible for many Texans.
Here’s how it works: SOLRITE installs solar panels and sonnen batteries at eligible customer households with no upfront cost. (I’ve asked the sonnen spokesperson what the eligibility criteria are and will update this post when I hear back.) Homeowners then pay a lower-than-average rate for the solar energy they produce each month, saving them money compared to typical electricity rates in Texas.
Texans participating in the SOLRITE program pay a leading rate of 12¢ per kWh for solar energy, significantly lower than the 19-20¢ per kWh rate commonly seen in the state.
The sonnen batteries provide backup power for each home at no charge and enable Texan homeowners to join a larger virtual power plant (VPP) network. The VPP supports the Texas grid, reducing reliance on polluting power plants during times of high demand. SOLRITE and sonnen generate revenue from the energy stored in these batteries, which helps cover the cost of the equipment, and that’s what allows homeowners to use the battery systems at no cost.
Each day, the sonnen batteries in the VPP help balance the Texas grid by directing power where it’s needed most and when it’s most valuable. This reduces energy costs for everyone, whether they’re in the VPP or not, and strengthens the grid’s efficiency and resilience.
The VPP also differs from traditional solar buyback programs that send extra energy to the grid whenever it’s sunny. Instead, the sonnen battery network strategically controls when and how energy is shared with the ERCOT grid, making solar energy a more reliable power source.
Since September 2024, SOLRITE says it’s already committed over 40 megawatt-hours of residential battery power to the Texas market through this program, working with solar installers statewide.
Blake Richetta, chairman and CEO of sonnen Inc. USA said:
The bold and inventive SOLRITE introduction in the Texas market represents the most successful early-stage launch of the sonnenConnect VPP in the world.
sonnen is proud to dispatch authentic VPPs across the United States and Australia, as well as the largest behind-the-meter residential battery based VPP in the European Union – with nerve centers in Germany, Italy and Belgium, amongst other countries.
And in all of these markets, we have never seen anything like the SOLRITE Texas launch. We are so proud of the SOLRITE invention, and we are passionate to build a SOLRITE-Future for Texas.
Electrek’s Take
I belong to a virtual power plant in Vermont and have two Tesla Powerwalls, and I love being part of this program. I lease my Powerwalls for $55 a month and had to pay a couple thousand dollars to have them installed, so what sonnen and SOLRITE are offering to Texans is a really good deal.
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The Joint Office of Energy and Transportation’s Communities Taking Charge Accelerator has awarded $43.7 million to 25 innovative EV charging projects across the US.
The Communities Taking Charge Accelerator was launched on April 16, 2024, and the funding comes from the Infrastructure Investment and Jobs Act.
The three main goals of the funding are to expand access to electrified mobility options for folks who don’t have access to home charging, accelerate opportunities for fleet electrification, and improve and advance managed charging systems to mitigate impacts and optimize usage of the grid.
On January 15, 25 project awardees were announced that impact 23 states, the District of Columbia, and Puerto Rico. Challenges that the projects will address include:
Solving for no-home charging. Not everyone has a driveway or garage to charge their EVs, e-bikes, or scooters. Projects are testing creative solutions like curbside chargers, multifamily charging setups, and shared community micromobility hubs. They also look at everything from rate design to building multimodal charging hubs, making it easier for people in apartments or urban areas to power up.
In this project, for example, Voltpost will install lamppost EV chargers in San Francisco using existing infrastructure.
Electrifying fleets for people and goods. Think of shared rides, carpool services, and last-mile delivery trucks. Electrifying these types of light- and medium-duty fleets could have a huge impact on reducing emissions. These projects aim to figure out how to charge fleets more efficiently, whether they’re transporting people or goods. It’s all about improving community access to clean transportation options while keeping operations smooth for fleet operators.
The Los Angeles County Metropolitan Transportation Authority’s project allows Metro Bike Share to increase access to electric bikes by implementing electrified stations with in-dock charging.
Managed charging for clean reliable energy. Managed charging is about coordinating when and how EVs charge to avoid grid strain and use renewable energy whenever possible. Projects in this area are working on open-source tools and standards to make managed charging tech accessible and easy to integrate into today’s energy systems.
The University of Alabama is running a project to develop and implement an end-to-end multi-stakeholder EV charging management framework to enhance grid reliability.
Gabe Klein, executive director of the Joint Office, said, “This investment aims to expand transportation and energy infrastructure to meet the current and anticipated demands – from how people charge and use shared vehicle fleets including e-bikes around transit hubs to a new model for more affordable multifamily housing charging – advancing a more holistic energy and transportation ecosystem.”
Electrek’s Take
The Biden administration has been rapidly doling out funds to clean energy and EV projects, and it’s great to see the Communities Taking Charge Accelerator funds reach its recipients at the 11th hour. There are some great projects, which you can check out here.
Now is a great time to begin your solar journey so your system is installed in time for those sunny spring days. If you want to make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. –trusted affiliate partner
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Tesla announced on X that it is working on a new way to keep the cameras clean on the Cybertruck.
Hopefully, it will make its way to other Tesla vehicles because it is a common problem with the performance of its advanced driver assist systems (ADAS).
When driving using Tesla’s Autopilot or Full Self-Driving (Supervised) suite of driver-assist features, you will often get an alert that the system might not work properly because “one or more cameras are obstructed” due to dirt or snow coming off the road and into the lenses.
For Cybertruck, that’s an even problem because the rear-view camera is the only way to look behind the vehicle when the tonneau cover is up.
It led to some owners complaining that they need to remember to clean the camera at the back of the truck almost every time they use it, especially in the winter.
Tesla responded to some of those comments through its ‘Tesla AI’ account on X. One owner specifically asked if Tesla is planning a solution for when it achieves “unsupervised self-driving” because it then can’t expect someone to always be able to clean the cameras and Tesla responded:
On a more serious note, a more comprehensive cleaning solution is being worked on.
Tesla didn’t elaborate on the solution or when it would be available.
I doubt that it will be lasers, though it would be cool, but there’s undoubtedly a need for a solution.
In my own experience with FSD in the Quebec winter, I get alerts of obstructed cameras literally every other drive.
Tesla has already implemented heaters, which help some, but other than the front-facing cameras, which benefit from the windshield wipers, there’s a need for more.
What’s interesting here is Tesla basically admits that for unsupervised self-driving, which was part of the question it answered, it needs to add extra hardware to make it work.
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