Rivian builds cars people love. It just can't seem to make money doing it.
The new R2 SUV is the fix. It started reaching buyers this week.
The Money Problem
Rivian lost $3.6 billion last year. It sold just over 42,000 cars to get there.
The math per car is worse. Last quarter it lost about $6,000 on each one.
Picture a coffee shop that charges $4 a cup but spends $5 to make it. The more it pours, the more it loses.
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Why The R2 Is Different
The R2 is built to flip that. Scaringe says every version will make money on each sale.
Those cars start near $45,000 and top out around $58,000. Each one turns a profit, he says.
How did they pull it off? They halved the R2's build cost, while the old R1S SUV runs close to $80,000.
Rivian sees the sweet spot landing in the low $50,000s. That is just above the $49,000 average price of a new car.
A Brand People Love
Rivian has a rare problem. Owners rate it the best, yet rank it low on quality.
In Consumer Reports' latest survey, owners loved it most. The same group also expected the most repairs.
Rivian wants the R2 to take that loyal base wider. Scaringe is aiming at Tesla, Jeep and Subaru.
"Certainly, we're going to draw on some Tesla customers, but the market of non-Tesla customers is many, many times larger," he told CNBC.
Industry watchers see room for it. One analyst called the midsize SUV space wide open for a strong new name.
Big Backers, Bigger Plant
Rivian is not doing this alone. Volkswagen put $5.8 billion into a deal for Rivian's software.
That made the German giant Rivian's top shareholder, with Amazon close behind. Amazon is also its biggest buyer of delivery vans.
Real profit still depends on volume. Scaringe says it comes once a new Georgia plant ramps up.
He adds that every R2 is cash flow positive at the car level. Rivian is now a $22 billion firm by market cap.
Once full, that Georgia plant will do more than the R2. Rivian plans an R3 crossover, delivery vans and even robotaxis.
What To Watch
That Georgia plant won't build cars until late 2028. Until then, Rivian is asking investors to trust the plan.
The cheapest R2 now lands next summer, not late 2027. Rivian moved it up to quiet online complaints.
Rivian shares fell about 5%, even as early reviews came in strong. Tesla's Model Y still rules U.S. EVs, with about 40% of sales last year.
For a firm that loses money on every car, the R2 has to be the one that finally doesn't.
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