Rivian has unveiled the R2, its next-generation platform. The all-electric crossover is expected to bring Rivian into the next chapter of its growth as an automaker. It is also expected to allow Rivian to scale its operations, making it a mainstream automaker.
Rivian CEO RJ Scaringe presented the R2 to an enthusiastic audience. Following is a quick overview of the Rivian R2.
Exterior
The Rivian R2 looks very similar to the Rivian R1S. Just like the flagship SUV, it features a large frunk that could fit some luggage and gear. At the rear, the R2 includes some features that provide an open-air experience, such as quarter windows that pop out and a rear glass window that drops down. The drop-down rear glass of the R2 also makes loading items to the all-electric crossover’s trunk much easier.
Introducing R2.
⚡️0-60 under 3 seconds.
⚡️Up to 300+ miles of range.
⚡️Room for five and all your gear.
Reserve yours now: https://t.co/1H408AWcA4
Deliveries expected to begin in the first half of 2026. The features, options and digital displays shown are subject to… pic.twitter.com/xC5ZjyaoCL— Rivian (@Rivian) March 7, 2024
Size-wise, Scaringe noted that the Rivian R2 is about 400 mm (15.7 inches) shorter than the R1S. A slide used in the presentation noted that the R2 has a length of 4715 mm (185.6 inches), a height of 1700 mm (66 inches), and a wheelbase of 2935 mm (115.5 inches). This should make the all-electric crossover easier to maneuver and drive. Its compact size should also help it fit in tight spaces and garages.
Interior
The Rivian executive noted that despite its more compact dimensions compared to the R1S, the R2 is designed to feel spacious inside. “It feels so inviting,” Scaringe said. Like the R1T and R1S that came before it, the R2 is also a vehicle that’s designed to be taken outdoors. It was thus no surprise to see that the R2’s second and first-row seats are capable of folding flat for an optimal car camping experience.
Take a 360-degree tour of R2. pic.twitter.com/euyJkScRYq— Rivian (@Rivian) March 7, 2024
Much to the amusement of the audience, Scaringe noted that the R2 features two gloveboxes and Rivian’s trademark in-door flashlight. Steering wheel controls are dominated by two large scroll wheels, which is not unlike what’s used in the previous generation Tesla Model 3. Scaringe also noted that the R2 features 11 cameras and a suite of five radar sensors, four in the corners and one long range radar in front. The cameras and radar should help the Rivian R2’s planned self-driving features.
Specs
Scaringe did not share much about the Rivian R2’s specs, though he did state that the vehicle would be equipped with a battery pack comprised of 4695 cylindrical cells, which are larger than the 21 mm cells used in the R1 platform. It should also be noted that the Rivian R2 will feature a structural bombardment pack, which means that the top of the battery will be the floor of the vehicle itself.
Every seat in R2 can lay flat for the ultimate car camping experience. pic.twitter.com/hDH3c17y5N— Rivian (@Rivian) March 7, 2024
The Rivian R2 will be offered in three versions: a Single Motor Rear Wheel Drive (RWD) variant, a Dual Motor All Wheel Drive (AWD) variant, and a Tri-Motor variant with two motors on the back and one motor at the front. Scaringe noted that all three R2 variants are expected to achieve over 300 miles of range. The Tri-Motor R2 is expected to achieve a 0-60 mph time of less than 3 seconds.
Price and Release Date
The Rivian R2 is expected to start at $45,000. While Scaringe did not discuss details on the vehicle’s pricing, this amount is likely true for the entry-level RWD version. Still, $45,000 is quite competitive, as the Tesla Model Y, a best-selling all-electric crossover, starts at $43,990 before options today.
Feel the breeze from all directions with the R2’s 360-degree open air experience, including powered rear glass. pic.twitter.com/GMKOEg5HpW— Rivian (@Rivian) March 7, 2024
Scaringe noted that the Rivian R2 is expected to start deliveries in the second half of 2026. The vehicle will initially be built at Rivian’s Normal, IL facility.
Watch Rivian’s R2 unveiling in the video below.
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Investor's Corner
BNP Paribas Exane initiates Tesla coverage with “Underperform” rating
The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.
Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels.
The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.
Tesla’s valuation
In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.
The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.
Tesla and its peers
BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.
The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.
News
Tesla FSD’s new Mad Max mode is getting rave reviews from users
It does appear that Mad Max mode is destined to be one of the system’s biggest steps forward to date.
Tesla’s release notes for the newly released Mad Max mode for FSD (Supervised) V14.1.2 simply stated that the feature “comes with higher speeds and more frequent lane changes than Hurry.” But as per videos that have been posted online by FSD users who have tested the system, it does appear that Mad Max mode is destined to be one of the system’s biggest steps forward to date.
It is then no surprise that the new capability is getting rave reviews from Tesla owners.
Impressive tests
A look at posts on social media platform X would show that, similar to past FSD releases, numerous Tesla content creators immediately tested Mad Max mode on real-world streets after it was downloaded onto their vehicle. Considering that the update was released rather late, the first tests of Mad Max mode were done at night. Despite this, it was evident that Tesla worked very hard to make Mad Max mode into something that is very useful in real-world scenarios.
This could be seen in videos from longtime Tesla owner @BLKMDL3, who observed that Max Max mode was “amazing” and like “perfect for LA traffic” due to its cautious but assertive nature. Later on, the Tesla owner noted that after eight drives, it was evident that FSD (Supervised) V14.1.2 was impressive.
Assertive but safe
Other testers such as Model Y owner Sawyer Merritt noted that Mad Max mode drives very quickly and confidently, with smoother acceleration that is still very safe. These were echoed by another longtime FSD tester, Dirty Tesla, who noted that Mad Max mode seems to be designed for heavy, aggressive traffic so users could fit in better. The FSD user did, however, observe that Mad Max mode does speed up a lot on open roads.
Recent comments from Tesla AI Head Ashok Elluswamy have indicated that Mad Max mode was created to be a solution for daytime congested traffic, which is arguably one of the most soul-crushing experiences that drivers deal with on a daily basis. With this in mind, it does appear that FSD (Supervised) V14.1.2 could prove to be a notable step forward in Tesla’s push towards true autonomous driving.
Elon Musk
Elon Musk highlights the biggest flaw in X’s monetization program
Elon Musk also stated that YouTube manages creator payments “much better.”
Elon Musk has admitted that X’s creator payout system isn’t living up to expectations, and he has highlighted the current system’s biggest flaw.
Amidst complaints about low and inconsistent payments, the platform’s owner acknowledged that X has been “underpaying and not allocating payment accurately enough.” Musk also stated that YouTube manages creator payments “much better.”
Musk acknowledges payout issues
Recent discussions about the social media platform’s payout issues began when X product head Nikita Bier stated that the company was developing new upgrades for “power users.” This prompted X user Peter Duan to raise ongoing concerns about being “consistently underpaid” compared to his peers. Bier responded candidly, suggesting that “creator payouts do more harm than good and we need to off-ramp to a different system.”
Musk then weighed in on the matter, contradicting Bier’s view. “No,” Musk wrote in his reply, “the issue is that we are underpaying and not allocating payment accurately enough. YouTube does a much better job.” The Tesla CEO’s comment immediately reignited debates about X’s monetization program, which some have criticized for its rather unpredictable nature.
X’s monetization challenges
Since X launched its ad revenue-sharing program in 2023, the system has promised to reward Premium subscribers who generate high engagement with verified accounts, as noted in a WION report. Creators, however, have argued that the company’s payout model has remained inconsistent, with revenue fluctuating even when view counts stay stable. Reports have noted that some users with millions of monthly impressions have received just a few hundred dollars.
By contrast, YouTube’s Partner Program, which takes a 45% cut of ad revenue, is known for more transparent and predictable payments. Musk’s admission that YouTube handles monetization more effectively could then hint at a potential shift towards a new monetization program for X, a platform that has become increasingly critical to social conversations over the years.
BNP Paribas Exane initiates Tesla coverage with “Underperform” rating
Tesla FSD’s new Mad Max mode is getting rave reviews from users
Elon Musk highlights the biggest flaw in X’s monetization program
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