Summary

  • Rivian's R2 lineup aims to disrupt the market by reducing the number of ECUs and wiring harness length, resulting in significant production cost savings and competitive pricing.
  • The transition to a streamlined network architecture allows Rivian to have more control over its vehicles' systems and software integration, eliminating challenges associated with the previous model.
  • With the R2 estimated to have an MSRP of $40,000-$60,000 and potential future models, Rivian is making efforts to offer more affordable electric vehicles to compete with other brands like Tesla and attract a broader customer base.

In the ever-evolving market of electric vehicles, Rivian is positioning itself as a formidable competitor to industry giants like Tesla. The anticipation surrounding Rivian's forthcoming R2 models is reaching new heights as founder RJ Scaringe sheds light on the innovative steps the company is taking to make electric vehicles more accessible to a broader audience.

Drawing from the brand's extensive experience and technological prowess, Rivian's R2 lineup aims to disrupt the market with its advanced network architecture. Scaringe's recent remarks during an earnings call have unveiled the company's ambitious goals: a 60-percent reduction in the number of Electronic Control Units (ECUs) within the vehicle and a corresponding 25-percent reduction in wiring harness length. These impressive figures translate to significant production cost savings, enabling Rivian to offer competitively priced vehicles that can go head-to-head with established players like the Tesla Model Y.

The transition to this streamlined network architecture is a crucial component of Rivian's strategy to redefine affordability in the electric vehicle sector. By reducing reliance on external suppliers and developing in-house components, Rivian gains enhanced control over its vehicles' intricate systems. Furthermore, the simplified architecture promises a smoother and more efficient software integration process, eliminating the challenges associated with the previous model's complex network.

Related: Real Differences Between The Hummer EV SUV And The Rivian R1S

Rivian's Newest Production Architecture Will Lower The Cost Of Future Models

2022 Rivian R1S
Rivian
  • Rivian is using cost-saving platforms for its electric manufacturing.
  • It's speculated these savings could trickle down to 2026 R2 shoppers.

With announcements of Rivian figuring out new ways to produce its electric architecture at a lower price, this will likely trickle down to us, the consumers, for future models. For instance, the already-loved R1T and R1S models will see these positive changes, with hopefully a few thousand dollars chopped off from their MSRPs. After all, Rivian has had issues capturing EV buyers because of its higher price tag and lesser-known name: especially when compared to Tesla.

While recently speaking on the car manufacturer's most recent quarterly earnings call, RJ Scaringe, Rivian's founder, noted that the R2's architecture will have 60 percent fewer ECUs and that the wiring harness length will be reduced by 25 percent. The car manufacturer can do this by developing in-house components rather than using off-the-shelf parts. On top of these revelations, Rivian's boss added that it would consolidate ECUs into vehicle zones.

These will mainly impact the less-expensive R2 lineup, as the R1 continues to be out of reach for most drivers. After all, between the R1T costing $78,000 and the R2 estimated closer to $40,000-$60,000, that could put it in direct competition with Tesla. Of course, we're speculating, as the R2 has yet to make a splash or hit roads. However, hopefully, this new architecture will come in handy when the time comes.

Also, Tesla and Rivian did reach a new deal regarding the company using Tesla Supercharger Stations, so that is something to keep in mind. With more options for charging, Rivian could boost visibility and sales.

Related: Why The Rivian R1T Is The Best Electric Pickup Truck Currently

The R2 Being Closer To $40,000 Would Shift The EV Market To Rivian's Corner

 Blue Rivian R1S on a road
Rivian
  • Rivian's in-house architecture will mean cheaper R2s in 2026.
  • With an estimated MSRP of $40,000-$60,000, the all-new R2 could become a key player in the off-roading EV sector.

Although the Rivian R2 has yet to release, we're assuming that with this new, cost-saving technology inside its design, we could be looking at a much cheaper price tag when it hits the market. Considering the R1S and the R1T are both premium off-roading EVs, seeing the smaller, highly-anticipated model hit roads at a competitive price would undoubtedly create hype for the brand.

After all, many car manufacturers can create electric vehicles for cheaper and insert batteries lasting far longer between charges: all things that create buzz for them online and in person. It's also worth noting that up to this point, it's speculated the all-new R2 will be between $40,000 and $60,000 base MSRP upon release in 2026.

By transitioning to this streamlined network architecture, Rivian's strategy to redefine affordability in the electric vehicle sector becomes even closer to reality. Furthermore, reducing reliance on external suppliers and developing in-house components can give the brand more control over internal features and craftsmanship. A simplified architecture promises a smoother and more efficient software integration process, eliminating the challenges associated with the previous model's complex network.

It's also reported that this vehicle could spawn a pickup truck, following in R1T an R1S' footsteps, so having two great and affordable EV off-roaders certainly sounds nice.

Related: Here's How The Ford F-150 Lightning Stacks Up Against The Rivian R1T

Rivian Has Been A Little Out Of Touch Until Recently

Green 2023 Rivian R1T
Rivian

Until now, Rivian has been an experimental EV brand in North America, boasting high-performance vehicles and interesting design features. From a cost standpoint, Rivian is seen as a wealthier driver's car of choice, especially for off-roading. Notably, according to the company's Chief Financial Officer (CFO) Claire McDonough, who spoke with Emmanuel Rosner during Deutsche Bank's Global Auto Industry Conference Call: Rivian is off to make less expensive EVs heading into the latter part of this decade.

Many EV customers aren't quick to spend $70,000+ on a new car, nonetheless, from a brand as fresh on the scene as Rivian. Because of this, the company has set its eyes on more affordable releases with the 2026 R2 and rumored R3.

The R2 and even rumored R3 will follow the sleek yet capable R1S and R1T's design, all without costing an arm and a leg. Through the newest breakthrough architecture for the electric motors/battery packs Rivian uses, new models don't need to cost as much.

Of course, it's normal for certain vehicle brands to have higher-priced models. But, as a newer brand, Rivian doesn't want to shoot itself in the foot by alienating potential customers after all, with the Tesla Cybertruck coming to market at a base MSRP of $40,000, which would blow current Rivian's out of the water.

We're sure the company is aware of this and is actively trying to get a cost-effective version of the beloved R1 twins to market: fast. Rivian has long been compared to Tesla, a fully-electric car brand targeting the U.S. market. Therefore, whatever they do with R2 and R3, it needs to be able to take some spotlight from Tesla.

Related: 10 EVs That Will Make for Great Overlanding And Camping Vehicles

A More Affordable EV Platform Means More Customers For Rivian

2022 red Rivian R1T
Rivian
  • Rivian has steep competition in the off-roading/truck EV market.
  • With cheaper MSRPs for R2 models, this could boost sales for Rivian.

As we head into the years leading up to the 2026 Rivian R2 release, the company is at a crossroads in terms of messaging. After all, why not buy an electric truck from brands like Ford or Chevy for less money while also buying into a long history of success and quality?

As mentioned, Rivian is new to the game. Whenever the new shiny toy comes into the market, we're excited and eventually pick it to pieces. This has been a problem for Rivian, as the company makes an amazing product. The main problem is that it is only offering a high-end option for customers, which most people cannot afford. It's also worth noting that Tesla is heading full speed into an affordable release structure, slashing existing model prices and aiming for $25,000 EVs.

Again, the only 'direct' competition we'd say Tesla has with Rivian would be Cybertruck. If that can come onto the market and make a major impact: Rivian could be in a difficult spot. Regardless, we wish them the best and can't wait to see some *official* R2 renderings.