Rivian is prioritizing R1S production with robust demand into 2024
EV startup Rivian (RIVN) is gearing up to accelerate production of its first electric SUV, the Rivian R1S, with robust demand going into next year.
Rivian’s CFO Claire McDonough explained during an interview with Deutsche Bank that the company is seeing strong demand despite the economic environment.
McDonough discussed Rivian’s production ramp and how the startup plans to achieve positive gross margins by the second half of 2024.
Although supply chain issues have been an ongoing issue in the industry, Rivian is seeing some relief. Their biggest problem was access to power semiconductors, which the company is overcoming with new in-house technology like its Enduro drive units.
Rivian’s CFO says the Enduro production ramp is ahead of schedule. As mentioned during its Q1 earnings, Rivian introduced the drive units and LFP battery packs into its electric delivery vans (EDVs) for Amazon insuring the quarter.
A few weeks ago, Rivian built its first saleable R1 series model fitted with the Enduro drive unit. Rivian expected the transition to slow production in the first quarter, with 9,395 units built. However, it anticipates the pace to pick up in the second half of the year as it works to reach its 50,000 target.
Rivian to focus on R1S production as demand climbs
McDonough said Rivian continues to see a “robust backlog of preorders that extends into 2024.” Although it has seen some impact from the broader economic implications regarding daily order rates, it has maintained stable demand.
With the ability to now order a Rivian R1T model and have it delivered in less than two weeks (it’s also offering same-day deliveries on R1T day, June 17), Deutsche Bank‘s Emmanuel Rosner asked if the company had the flexibility to shift production to get R1S models into customers’ hands quicker.
McDonough explained the R1T was Rivian’s first model, so they have had more time to focus on the production ramp. For the first time in Q2, the R1S will take the bulk of the volume.
Rivian is seeing higher demand for the R1S, with about 70% of the company’s preorders, so the company is beginning to prioritize production to resolve the demand imbalance.
More importantly, Rivian’s CFO says no specific bottlenecks limit the transition, and most models being built today are R1S.
The company is still working through pre-March 1, 2022, preorders at the moment, but over the year into 2024, they will begin later orders. McDonough explains rolling out the new Enduro units will help them work through the backlog.
The company expects a few weeks of downtime next year as it introduces new technology to improve efficiency and cut costs, including its next-gen network architecture, LFP battery tech, high nickel batteries, and a simplified manufacturing process.
Rivian’s CFO touched on another few key points during the interview, including its upcoming R2 series, set to be unveiled early next year. The R2 models will offer Rivian’s adventure theme at an affordable ($40,000 to $60,000) price range.
When asked if Rivian would follow Ford and GM in adopting Tesla’s NACS, McDonough said the company is excited for more people to have access to high-quality charging while it remains open to partnerships.
Electrek’s Take
Rivian was one of the few EV startups that maintained its production target this year after the first quarter.
The company continues reducing complexity while introducing new technology to improve efficiency and profitability. Sources recently told Electrek that Rivian was in talks to acquire Swedish-based EV route planning service A Better Route Planner (ABRP), which will likely greatly improve its software and navigation capabilities as well.
Moving to R1S production could be a sign of weakening demand for pickups, or perhaps the SUV is simply attracting more buyers. We’ll find out more over the course of the year as Rivian continues expanding its brand and working towards turning a profit. For those R1S reservation holders, your time is coming soon.
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![Day 1 of the Electrek Formula Sun Grand Prix 2025 [Gallery]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/07/54629423281_6315c46dff_k.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!
In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.
Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.
Stay tuned for more!
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The numbers are in and they are all bad for Tesla fans – the company sold just 5,000 Cybertruck models in Q4 of 2025, and built some 30% more “other” vehicles than it delivered. It just gets worse and worse, on today’s tension-building episode of Quick Charge!
We’ve also got day 1 coverage of the 2025 Electrek Formula Sun Grand Prix, reports that the Tesla Optimus program is in chaos after its chief engineer jumps ship, and a look ahead at the fresh new Hyundai IONIQ 2 set to bow early next year, thanks to some battery specs from the Kia EV2.
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Tesla has launched its new Oasis Supercharger, the long-promised EV charging station of the future, with a solar farm and off-grid batteries.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to the Supercharger stations, and CEO Elon Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
All of these pieces have been in place for years, and Tesla has now discontinued the Powerpack in favor of the Megapack. The Supercharger network is also transitioning to V4 stations.
Yet, solar and battery deployment haven’t accelerated much in the decade since Musk made that comment, but it is finally happening.
Last year, Tesla announced a new project called ‘Oasis’, which consists of a new model Supercharger station with a solar farm and battery storage enabling off-grid operations in Lost Hills, California.
Tesla has now unveiled the project and turned on most of the Supercharger stalls:
The project consists of 168 chargers, with half of them currently operational, making it one of the largest Supercharger stations in the world. However, that’s not even the most notable aspect of it.
The station is equipped with 11 MW of ground-mounted solar panels and canopies, spanning 30 acres of land, and 10 Tesla Megapacks with a total energy storage capacity of 39 MWh.
It can be operated off-grid, which is the case right now, according to Tesla.
With off-grid operations, Tesla was about to bring 84 stalls online just in time for the Fourth of July travel weekend. The rest of the stalls and a lounge are going to open later this year.
Electrek’s Take
This is awesome. A bit late, but awesome. This is what charging stations should be like: fully powered by renewable energy.
Unfortunately, it will be much harder to open those stations in the future due to legislation that Trump and the Republican Party have just passed, which removes incentives for solar and energy storage, adds taxes on them, and removes incentives to build batteries – all things that have helped Tesla considerably over the last few years.
The US is likely going to have a few tough years for EV adoption and renewable energy deployment.
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