Can Rivian Beat Tesla in the Long Term?
Rivian began delivering its affordable R2 fleet this week in a push to bring the company to the mainstream.
Can Rivian Beat Tesla in the Long Term?
Overview
They're finally here. Deliveries of the much-anticipated Rivian (NASDAQ: RIVN) R2 fleet have begun, and so begins an extraordinarily important chapter for the electric vehicle (EV) maker. The R2 isn't just another model. With a starting price of less than $47,000, it's Rivian's push into the mainstream through a more affordable option.
The company's ability to challenge Tesla's (NASDAQ: TSLA) dominance really hinges on the success and reception of the R2. Rivian's previous models are luxury-oriented, with price tags starting at over $70,000. They are highly rated by drivers, but because of their price point, they are out of reach for most.
Details
It hasn't been an easy year for EV makers. The federal EV tax credit was eliminated, and demand for EVs has subsided in the U.S. Several legacy automakers have also downsized or canceled EV-related plans. While the environment is challenging for Rivian, there is an opportunity to reinvigorate the EV market and capture additional market share, especially from dominant rival Tesla.
Source
Originally published at www.fool.com.
