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Rivian R1S: 7-seat, 410-mile SUV is taking on Land Rover in the luxury off-road game
Rivian CEO and founder RJ Scaringe is adopting a bold and strategic play to enter the auto industry. With the recently unveiled R1T electric pickup truck, Rivian is attempting to breach a market dominated by America’s best-selling vehicles like the Ford F-150. With the R1S SUV, which is set to be unveiled today at the 2018 LA Auto Show, the company is taking on pedigreed carmakers such as Land Rover in the luxury SUV segment.
The Rivian R1S, just like its pickup truck sibling, could be described as a luxury adventure vehicle. The SUV is fitted with the same four 147 kW electric motors that power the R1T, as well as the same 2170 battery cells. Similar to the startup’s pickup truck, the R1S is available in three battery configurations — a 105 kWh entry-level variant, a 135 kWh mid-level version, and a 180 kWh top-tier variant. Compared to the R1T, though, the R1S has slightly more range, with the 105 kWh trim having an estimated range of 240+ miles per charge, the 135 kWh version having 310+ miles of range, and the 180 kWh variant having 410+ miles of range in one charge.
Performance between the R1T and the R1S is identical, with 135 kWh SUV capable of traveling from 0-60 mph in 3 seconds flat. Keeping the company’s character, the R1S could go through up to 1 meter of water. That said, the two vehicles also have their differences.
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- The Rivian R1S. [Credit: Rivian]
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- The interior of the Rivian R1S. [Credit: Rivian]
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- The Rivian R1S dashboard. [Credit: Rivian]
The Rivian R1S SUV. [Credit: Rivian]
The R1S, for one, has a slightly shorter wheelbase at 3,075 mm, which is less than the R1T’s 3,450 mm. Due to the absence of a bed, the R1S’s 5,040 mm overall length is also shorter than the R1T’s 5,475 mm length. Being a three-row SUV capable of seating seven, the R1S does not have as much storage as the R1T as well, with flourishes such as the pickup truck’s “gear tunnel” being absent on the vehicle. That said, the R1S is still capable of hauling a generous amount of cargo, thanks to its 330-liter frunk and its foldable third-row seats.
We asked the company why it opted to release an SUV together with its flagship pickup truck, considering that the SUV market is equally as dominated by big-name, veteran carmakers. Rivian noted that the risk for the R1S is actually quite low, considering that it shares 93% of the R1T pickup truck’s components. The company further pointed out that the SUV market has already been established, and the success of vehicles like the Tesla Model X, which is built on the Model S platform, has proven that cross-pollination is a viable strategy.
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- The Rivian R1T and R1S take center stage at the 2018 LA Autoshow
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- The Rivian RT1 and the R1S compared. [Credit: Rivian]
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Teslarati‘s Christian Prenzler was able to get an early preview of the Rivian R1S prior to its unveiling, and he notes that the vehicle’s overall form and size seem to be similar to the Chevrolet Tahoe and the GMC Yukon. He also stated that the SUV has a liftgate at the rear, which gives passengers a place to sit on. The R1S’ third-row seats, which are usually cramped in conventional SUVs, are also adjustable, allowing passengers to gain more legroom in exchange for less luggage space.
Rivian CEO and founder RJ Scaringe stated that he wants the company’s vehicles to focus on the adventure niche. In this light, the R1S SUV and the R1T electric pickup truck complement each other well, allowing the company to enter two hyper-competitive segments with vehicles that have a serious punch.
“They may have different form factors, they may be different sizes, but every single one of [our products] has to have this Patagonia-like feel of enabling adventure. We want to keep that very sharp. We want to focus only on the adventure space, so customers understand what we stand for,” he said.
Reservations for the R1S SUV are now open. Interested customers can place a refundable $1,000 deposit for the vehicle here. Production is expected to begin in 2021.
With assistance from Christian Prenzler.
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.”
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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.
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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.
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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.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
