Gary Black Compares Rivian’s R2 Launch to Apple Product Expansion, Tesla Launch of Model Y
Key takeaways
- Rivian's R2 launch has the potential to expand its total addressable market and revenue base, but also comes with risks of losing premium customers.
- Rivian's R2 SUV has a starting price of around $58,000
- The standard model coming next year will have a starting price of under $45,000
- Rivian recently raised its full-year guidance for vehicle deliveries to 65,000 to 70,000 vehicles
What happened
Gary Black, Future Fund Managing Partner, compares Rivian's R2 launch to Apple's product expansion and Tesla's launch of Model Y, citing potential for expanded total addressable market and revenue base.
Why it matters
Rivian's R2 launch, with a starting price of $58,000, could open up a new class of customers and expand its total addressable market size, making it more competitive with Tesla and other electric vehicle manufacturers.
Short-term and longer-term
Short-term. Rivian's stock price action in the coming weeks will be closely watched as the company's progress in expanding its total addressable market and revenue base is a key catalyst for the stock.
Longer-term. Rivian's move to launch a lower-cost model could lead to increased demand and revenue, but also risks losing premium customers.