Rivian CEO frames R2 as a brand test beyond Tesla comparisons
RJ Scaringe told Fortune he wants Rivian to become a brand with Apple- or Nike-like meaning as the R2 SUV nears launch.
By Hana Yoshida · Markets Reporter
3 min read
Rivian CEO RJ Scaringe is pitching the company’s coming R2 electric SUV as a brand-defining product, telling Fortune he wants Rivian measured against Apple or Nike rather than Tesla. The push comes as Rivian tries to reach a wider market while still posting losses in the billions and trading far below its 2021 IPO price, according to Fortune.
Fortune’s Diane Brady reported that Scaringe discussed the R2 at the Aspen Ideas Festival while sitting inside the vehicle. He opened the glove box, pointed out its felt lining and said it cost $11, using the detail to show how closely Rivian has worked over the vehicle’s design and materials.
Scaringe also showed Brady a Wall Street Journal review from an auto writer who said he wanted to buy an R2 when it goes on sale next year and viewed it as a potential standout American SUV, Fortune reported. “That’s the reaction we want,” Scaringe told Fortune. “We had to get this right and we’re happy that people are loving it.”
Rivian’s path has taken longer than many consumer-product startups. Fortune reported that Scaringe founded the electric-vehicle company in 2009, one day after completing an MIT Ph.D. focused on making combustion engines cleaner. Scaringe told Fortune he studied engines because he wanted to help replace them, and believed the degree would help him win over investors.
According to Fortune, Rivian needed nine years to reveal its first vehicles, a pickup truck and a large SUV. The company later raised nearly $12 billion in the largest IPO of 2021 as it moved toward production.
Rivian has built several high-profile commercial relationships, Fortune reported. Amazon, an investor, has worked with Rivian on electric delivery vans; Fortune said 30,000 are operating on U.S. roads, with plans for 100,000 by 2030. Rivian also has a $5.8 billion joint venture with Volkswagen to develop software-defined vehicle architecture and a deal with Uber to build 50,000 robotaxis, according to Fortune.
The company’s record also includes costly setbacks. Fortune reported that Rivian has faced a scrapped sports coupe, supply shortages, software problems, price increases and optimistic statements that led to a $250 million shareholder-lawsuit settlement. Fortune said the R2 represents Rivian’s third attempt to get this vehicle right.
Scaringe framed those years as part of building a complex company. “For any entrepreneur who’s building a complex business, you have to be comfortable being misunderstood for a while,” he told Fortune, adding that rejection and resilience have been part of his experience as a founder.
Fortune reported that Scaringe is not focused on China as an existential threat, saying Rivian’s technology compares with the country’s top five EV makers even though Rivian cannot match Chinese labor costs. He also contrasted his public style with Elon Musk’s, telling Fortune that he and Musk “probably couldn’t be more different in terms of the way we show up to the world.”
The scale gap with Tesla remains wide. Fortune reported that Tesla has about 17 times Rivian’s revenue, 75 times its market value, nearly 10 times its cash and healthy profits.
Scaringe told Fortune his goal is a brand that carries meaning beyond individual vehicles. “I hope the brand means more than the products,” he said. “I hope the product inspires people to do the things they love.”
This story draws on original reporting from Fortune.