Rivian’s R2: A Possible Reboot (Don’t Tell Elon)

by

So, Rivian [RIVN +0.40%]. It’s making trucks and SUVs, which is… ambitious. They also make vans for [AMZN 1.32%], because apparently Jeff Bezos needs even more logistical control. But here’s the thing: they’re about to unveil the R2 at SXSW, which, let’s be honest, is where all the important automotive decisions are made. (I’m kidding. Mostly.) The R2 is their attempt to not be just a luxury brand for people who enjoy off-roading and have a trust fund. It’s a big deal, and if you’re thinking of buying the stock, well, buckle up. It might be… interesting.

What’s the Deal with the R2?

Look, let’s be real. Rivian hasn’t exactly been crushing it in the production department. They went from making 24,000 vehicles in 2022 to 57,000 in 2023, which sounds good until you realize it dropped to around 42,000 last year. It’s like they’re playing production Tetris, and the blocks keep falling faster. And, you know, they’re not making money. Not a huge surprise when you’re trying to build cars. It’s expensive! They’re blaming supply chains, fewer subsidies (thanks, government!), and the fact that everyone and their mother is now making an electric vehicle. The R2 is their attempt to fix all that by, you know, making a slightly cheaper version.

The R2 is aiming for around $45,000. That’s about $30,000-$40,000 less than their existing models. Which is… a strategy. Apparently, it’s also cheaper to build, because they’ve figured out how to use fewer electronic bits and bobs. It’s like Marie Kondo-ing the car’s internal components. They’re also building a new plant in Georgia, which is good, because Illinois can only handle so much. They want to triple production by 2028. That’s… optimistic. But hey, gotta aim high, right?

Should You Buy the Stock? (Asking for a Friend)

Okay, so the stock is trading at around $15 a share. That’s… a lot lower than when it first went public. It’s valued at less than three times this year’s sales. Which, in the stock market, is basically saying, “We’re not sure what’s going to happen, but it could be something!” Analysts are predicting revenue will more than triple by 2028, and they think they’ll actually start making a profit. It’s a big “if,” obviously. But it’s a hopeful “if.”

The R2 launch is being compared to Tesla’s Model 3. Remember that? Everyone thought Elon was crazy, and then the stock went up a gazillion percent. (Okay, maybe not a gazillion, but a lot.) So, the thinking is, maybe Rivian can pull a similar trick. It’s a gamble, obviously. But sometimes, you just have to throw caution to the wind and buy a stock. Especially if you have a good story to tell at your next cocktail party. Just don’t blame me if it doesn’t work out. I’m just a writer, not a financial advisor. And honestly, I’m mostly just hoping they make a decent van for Amazon, because my Prime deliveries are taking way too long.

Read More

2026-03-06 20:02