Rivian has officially launched the next-generation R1S and R1T, new versions of the company’s flagship electric vehicles.
“We continue to evolve our flagship R1 vehicles,” CEO RJ Scaringe said, “offering quality and performance without compromise. Our revamped R1S and R1T push the technical boundaries further, creating our most capable products to date.”
Rivian aimed to refine and improve performance, design, range, and overall ownership experience with the new R1T and R1S, bringing everything from new drivetrains to new interior aesthetics to the EVs without compromising any of the features that owners loved about the first generation.
Additionally, Rivian is rolling out its new Autonomy Platform, which was developed in-house and utilizes eleven internally developed cameras along with five radars that perform over 250 trillion operations per second.
“For most owners, their R1 Gen 2 will be the most powerful computer that they own,” VP of Autonomy and AI for Rivian, James Philbin, said.
Let’s dive into some of the improvements Rivian has employed:
Performance
Rivian’s next-gen R1 platform now features more power, performance, and range, all stemming from a new drive unit offered in its Tri and Quad-Motor configurations. Dual-Motor has not gone anywhere either, and still offers great performance metrics:
-
- Dual-Motor Our Dual-Motor delivers incredible all-wheel drive capability along with 665 horsepower and 0–60 mph in as quick as 3.4 seconds for the Performance variant
- Tri-Motor Our all-new 850 horsepower Tri-Motor packs two motors in the rear and one in front for a blend of exceptional power and range. The Tri-Motor R1T delivers 0–60 mph in 2.9 seconds while offering an estimated range of 380 miles. In Conserve Mode, the estimated range is up to 410 miles.
- Quad-Motor For peak adventure, our new 1,025 horsepower Quad-Motor delivers 0–60 mph in less than 2.5 seconds in R1T — and ¼ mile in 10.5 seconds — with a staggering 1,198 lb-ft of torque when using Launch Mode. 60–80 mph acceleration is 1.5 seconds, with incredible torque control at each wheel for superior on-road performance and off-road capability.
Ride and Handling
Rivian also focused on the ride and handling experience in the R1 lineup for this second-generation vehicle launch. The suspension system has been fully re-engineered, improving on what customers called a “sport-tuned feel” in the first-generation EVs. Rivian decided to go with a “smoother” ride for the new R1T and R1S, which is adjustable to ensure comfortable on and off-road capabilities.
Vehicle equipment has also been refined. Rivian developed new wheels and fitted them with new tires, including a redesigned 22″ aerodynamic wheel design and Pirelli-developed tires to increase range.
For Performance, Rivian is going with an Ultra-High-Performance Michelin tire that will be available on the Quad-Motor configurations. Additionally, for a “well-rounded” experience, Goodyear has a 20″ ADV tire that offers “balanced all-around capability with the rolling-resistance of an all-season,” and comes standard.
Range and Batteries
Three battery pack sizes will still be offered by Rivian, but the Max and Large batteries have been completely re-engineered and offer ranges of 420 and 330 miles, respectively, based on estimations. They will continue to use 2170 cylindrical cells, and the pack enclosure features a “large high-pressure de-casting” system to simplify manufacturing and reduce mass.
The new Standard Pack will feature lithium-iron-phosphate (LFP) chemistry and provide an EPA-estimated 270-mile range.
140 miles of range can be regained in as little as 20 minutes and are compatible with all major public high-speed charging networks. This includes the Rivian Adventure Network and the Tesla Supercharger Network.
Design and Experience
Rivian honed in on new features with the R1T and R1S and also added two new premium interiors, new exterior paint options, and new darkout trim options.
These are in addition to the new wheel and tire choices, and now vehicles come with a new electronically tinted glass roof, new in-cabin storage, interior lighting themes, new digital interfaces, and new cell shading designs for the different drive modes. It has also improved on the wireless charger.
Surround Sound Audio with Dolby Atmos is available with Rivian Premium Audio.
-
Refined Electrical Architecture and Compute Platform
The second-gen R1 features new electrical architecture and a new compute platform that was developed in-house by the Rivian hardware and software teams.
“While the exterior of the R1 looks similar, the electrical system is completely redone, providing a significant increase in features as well as a dramatic increase in sensing and compute capability,” Rivian’s SVP of Electrical Hardware, Vidya Rajagopalan, said.
Trimming the ECU count from 17 in the first-gen to just 7 in the second-gen, the “massive simplification” was part of a shift in zonal architecture. Infotainment, autonomy, and vehicle access, as well as battery management, all have their own ECUs. Every other vehicle function is controlled by the remaining three.
Rivian Autonomy Platform
The Rivian Autonomy Platform utilizes “11 internally developed cameras and five radars performing over 250 trillion operations per second, an industry-leading level of compute power.”
The cameras are high-resolution and now include 4K HDR units, which have 360-degree visibility and can see three-times farther than the previous system, as well as 10 seconds ahead at highway speeds.
These are the most camera megapixels of any EV in North America and enable improved dynamic range and clear vision in high-contrast scenarios, like tunnel entrances and exits.
Rivian is also utilizing a cabin-facing camera in the rearview mirror to detect both driver fatigue and distraction when operating in Enhance Highway Assist mode, which will roll out later this year.
The Autonomy Compute Module is backed up by dual NVIDIA DRIVE Orin processors, delivering 10 times more compute performance than the previous system.
-
Pricing
The new R1S will start at $75,900 and the R1T at $69,900. Dual-Motor configurations can be ordered today and are available immediately. Tri-Max is expected to be launched in the late Summer, while Quad Max will come shortly after.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
-
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
