“There is a lack of choice of highly compelling EV products in that $45,000 to $55,000 price range, recognizing the average price of a new vehicle transaction was around $48,000,” said CEO RJ Scaringe in the earnings call. “We remain very bullish on the R2 segment and the R2 product itself.”
Rivian says that “economic and geopolitical uncertainties and pressures” and high interest rates have shaped the company’s outlook for the coming financial year. Aside from introducing the R2, Rivian also plans to shut down its consumer and commercial production lines to implement cost-saving technologies on the existing R1 platform. Hopefully, this means Rivian’s electric trucks and SUVs will get even cheaper.
Rivian’s production target for 2024 is 57,000 vehicles.
It’s worth noting the brand recently introduced more affordable battery pack options to appeal to budget-conscious consumers. Rivian’s shares fell 25% following the announcement.