Motortrend Interview w/ RJ: What We Absolutely Needed to Get Right on the 2026 R2 Electric SUV

[Electric Rivilution]

Rivian CEO: What We Absolutely Needed to Get Right on the 2026 R2 Electric SUV

Can the Rivian R2 be profitable? Is there a R2 truck in the works? Rivian CEO RJ Scaringe gives us the details.

https://www.motortrend.com/features/2024-rivian-ceo-rj-scaringe-interview-r1s-r1t-r2-r3-r3x/

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[Philip]

Rivian CEO: What We Absolutely Needed to Get Right on the 2026 R2 Electric SUV

Can the Rivian R2 be profitable? Is there a R2 truck in the works? Rivian CEO RJ Scaringe gives us the details.

https://www.motortrend.com/features/2024-rivian-ceo-rj-scaringe-interview-r1s-r1t-r2-r3-r3x/

R2 needs to be end of this 2024 and R3 in 2025 and not 2026.

 

[Surferdude]

R2 needs to be end of this 2024 and R3 in 2025 and not 2026.

That would be amazing but highly unrealistic. Having said that, what will likely be an average 3 years delivery time for most current R2 reservations and 4+ years for R3 makes this all very unexciting. Especially after waiting 5+ years for my R1 and still nothing. Life is just too short...

 

[Dark-Fx]

Should have asked "what markets aren't you considering for the R2 platform?"

 

[R1Thor]

R2 needs to be end of this 2024 and R3 in 2025 and not 2026.

Why?

Do you understand how scaling manufacturing works?

You DO understand that'd be certain death, right? That's more money than you could possibly imagine. It's not just 'do it faster,' but spinning up that level of production would REQUIRE them to THROW MONEY at every sub-contractor, vendor, and supplier they ALREADY have standard agreements with.
AND require more staff across the board
AND would result (inevitably) in a MUCH higher initial quality hit, resulting in MUCH more scrap and rework.

People with NO appreciation for how herculean a task this is, need to lose this fallacy of 'faster means quicker to profits.'

NO
Just
No

It means they'll hemorrhage so much money in the front end, they won't get even one vehicle off the line. Period.

And EVEN IF they were given a magic card with unlimited money--the ABSURD amount of scaling this would take would mean their profits still won't come for a decade or more. THE DEPTH of that area under the curve of sunken cost on the front end would be completely meaningless to the long term.

I GET that you want the car fast. IT'S AWESOME they have people passionate about their vehicles.

But they know what they're doing--they know what targets they have to hit. They need to focus on execution, not trying to get done 'faster.'

Fast > Cheap > Good You can ONLY pick 2. There are ALWAYS compromises. Give them the time they need to build the quality vehicle that will be the homerun we all want to see.

 

[R1Sky Business]

Why?

Do you understand how scaling manufacturing works?

You DO understand that'd be certain death, right? That's more money than you could possibly imagine. It's not just 'do it faster,' but spinning up that level of production would REQUIRE them to THROW MONEY at every sub-contractor, vendor, and supplier they ALREADY have standard agreements with.
AND require more staff across the board
AND would result (inevitably) in a MUCH higher initial quantity hit, resulting in MUCH more scrap and rework.

People with NO appreciation for how herculean a task this is, need to lose this fallacy of 'faster means quicker to profits.'

NO
Just
No

It means they'll hemorrhage so much money in the front end, they won't get even one vehicle off the line. Period.

And EVEN IF they were given a magic card with unlimited money--the ABSURD amount of scaling this would take would mean their profits still won't come for a decade or more. THE DEPTH of that area under the curve of sunken cost on the front end would be completely meaningless to the long term.

I GET that you want the car fast. IT'S AWESOME they have people passionate about their vehicles.

But they know what they're doing--they know what targets they have to hit. They need to focus on execution, not trying to get done 'faster.'

Fast > Cheap > Good You can ONLY pick 2. There are ALWAYS compromises. Give them the time they need to build the quality vehicle that will be the homerun we all want to see.

So, how do you really feel about it?

 

[Hillbilly]

Why?

Do you understand how scaling manufacturing works?

You DO understand that'd be certain death, right? That's more money than you could possibly imagine. It's not just 'do it faster,' but spinning up that level of production would REQUIRE them to THROW MONEY at every sub-contractor, vendor, and supplier they ALREADY have standard agreements with.
AND require more staff across the board
AND would result (inevitably) in a MUCH higher initial quantity hit, resulting in MUCH more scrap and rework.

People with NO appreciation for how herculean a task this is, need to lose this fallacy of 'faster means quicker to profits.'

NO
Just
No

It means they'll hemorrhage so much money in the front end, they won't get even one vehicle off the line. Period.

And EVEN IF they were given a magic card with unlimited money--the ABSURD amount of scaling this would take would mean their profits still won't come for a decade or more. THE DEPTH of that area under the curve of sunken cost on the front end would be completely meaningless to the long term.

I GET that you want the car fast. IT'S AWESOME they have people passionate about their vehicles.

But they know what they're doing--they know what targets they have to hit. They need to focus on execution, not trying to get done 'faster.'

Fast > Cheap > Good You can ONLY pick 2. There are ALWAYS compromises. Give them the time they need to build the quality vehicle that will be the homerun we all want to see.

They still need to sell automobiles. If R1 demand has tapered off but R2 demand is there, the cost benefit analysis of rushing it to market needs to be done.

 

[ndmiller]

Especially after waiting 5+ years for my R1 and still nothing. Life is just too short...

I ordered my R1T at the end of October and received on December 8th. Why are you still waiting? Am I missing something?

 

[Dark-Fx]

I ordered my R1T at the end of October and received on December 8th. Why are you still waiting? Am I missing something?

Rivian doesn't have a service center in hawai'i yet. I think they said Summer 2024 for that one.

 

[Wefty]

I saw an R1S on the big island.

 

[PsyTrance]

Why?

Do you understand how scaling manufacturing works?

You DO understand that'd be certain death, right? That's more money than you could possibly imagine. It's not just 'do it faster,' but spinning up that level of production would REQUIRE them to THROW MONEY at every sub-contractor, vendor, and supplier they ALREADY have standard agreements with.
AND require more staff across the board
AND would result (inevitably) in a MUCH higher initial quantity hit, resulting in MUCH more scrap and rework.

People with NO appreciation for how herculean a task this is, need to lose this fallacy of 'faster means quicker to profits.'

NO
Just
No

It means they'll hemorrhage so much money in the front end, they won't get even one vehicle off the line. Period.

And EVEN IF they were given a magic card with unlimited money--the ABSURD amount of scaling this would take would mean their profits still won't come for a decade or more. THE DEPTH of that area under the curve of sunken cost on the front end would be completely meaningless to the long term.

I GET that you want the car fast. IT'S AWESOME they have people passionate about their vehicles.

But they know what they're doing--they know what targets they have to hit. They need to focus on execution, not trying to get done 'faster.'

Fast > Cheap > Good You can ONLY pick 2. There are ALWAYS compromises. Give them the time they need to build the quality vehicle that will be the homerun we all want to see.

Reads like a poorly formatted SQL query

 

[Dark-Fx]

Reads like a poorly formatted SQL query

COMMIT;

 

[Mygrain]

"... so large castings are used throughout the structure," said Scaringe.

This is very encouraging. Look at how Tesla is using large castings to simplify the Model Y. It's not just Tesla ... the C8 Corvette is another example.

When I toured the Normal plant in December, I was really struck by how many individual steel and aluminum pieces were welded together to build each R1 body.

 

[UnsungZero_OldTimeAdMan]

R2 needs to be end of this 2024 and R3 in 2025 and not 2026.

Sure thing, Mr. Fry. You go oust RJ and show them how it's really done by a real pro.

 

[R1Thor]

They still need to sell automobiles. If R1 demand has tapered off but R2 demand is there, the cost benefit analysis of rushing it to market needs to be done.

You don't think it has been? That's insanely naive.

It absolutely has. I have zero insider information, but just understanding the way that RJ and his senior leadership operate (*and how big business and manufacturing operates), there's zero scenario wherein they haven't had these conversations AT LENGTH. And I the current timeline is ALREADY moved up, for sure, then tweaked, optimized, and simulation stress tested. The calculus done includes all the layers of industrial engineering required to develop the logistics, accounting for unforeseens and innumerable variables, with a gargantuan risk analysis (and mountain of contingency protocols) attached.

Your armchair quarterbacking isn't going to convince this multitude of business to shift paradigms.

Bringing a car to market in the CURRENTLY PROPOSED timeline is already FAST. In manufacturing terms, it's lightening quick.

Believing Rivian is just 'taking their sweet time' because it feels like a good idea is inane. THEY WANT TO MAKE MONEY as much as we want to throw money at them, and likely more!!!

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