Why Rivian’s R2 Could Be Worth Far More Than Its Sales Numbers Suggest
Rivian Automotive (NASDAQ: RIVN) isn’t scheduled to report third-quarter earnings until Oct. 29, but the electric vehicle (EV) maker’s production and delivery numbers point to a strong quarter. The company said its Normal, Illinois, plant produced 19,751 vehicles, up 84.2% year over year, and delivered 19,248 cars in the third quarter, 45.8% more than in the same period a year ago.
The driving force for that growth is the company’s launch of the R2, a midsize EV that competes with the Model Y from Tesla, the Ioniq 5 from Hyundai Motor, the EV6 from Kia Motors, and the Mustang Mach-E from Ford Motor Company.
The R2 is smaller than Rivian’s R1 models and has a significantly lower price tag of $45,000 for the single-motor standard model. That price is still higher than the base models of its main competitors, but the R2 has a design edge with more ground clearance at 9.6 inches, fold-flat front seating, and standard off-road utility.
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