Image courtesy of Rivian.
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Rivian is in the middle of a big moment in its still fairly young life. It is stepping out of the very expensive portion of the SUV and truck market and into the moderately expensive portion of the market. It is expected to sell a lot more units of the R2 than it ever could of the R1 and R2. It is also trying to get profitable.
Rivian has never achieved an annual profit, and it needs to scale up production and sales considerably in order to get the economies of scale needed to achieve that feat. While the R2 provides some hope in that regard, it’s going to be tough to do it just with the R2.
There’s a general rule of thumb that an EV producer needs to get to 500,000 vehicles a year to get profitable, and the R2 won’t get Rivian to that level. Though, the company has said that it intends to become profitable through the R2.
