Connect with us
DAPA Banner
DAPA Coin
DAPA
COIN PAYMENT ASSET
PRIVACY · BLOCKDAG · HOMOMORPHIC ENCRYPTION · RUST
ElGamal Encrypted MINE DAPA
🚫 GENESIS SOLD OUT
DAPAPAY COMING

Business

Rivian bets R2 EV can turn it into a household name like Tesla

Published

on

Rivian bets R2 EV can turn it into a household name like Tesla

Rivian CEO and founder RJ Scaringe (right) speaks with longtime employee and engineer Max Koff during a launch event on June 2, 2026 for the company’s R2 SUV in Park City, Utah.

Michael Wayland / CNBC

PARK CITY, Utah — Rivian CEO RJ Scaringe is energetic as he makes his way through displays for the electric vehicle maker’s new R2 SUV.

Advertisement

The company founder moves quickly from the EV’s suspension and software systems to different models of the R2 that will soon begin to reach American consumers, including a roughly $45,000 entry-level model that Rivian said Tuesday is being pulled ahead from late 2027 to next summer.

But there’s an anxiousness in Scaringe’s voice as he talks to employees and media at the R2 launch event in western Utah and prepares to release the vehicle, starting Tuesday, to the world.

Scaringe founded the EV maker in 2009. He has grown Rivian into a company with a $22 billion market cap that ranked highest in Consumer Reports’ most recent customer satisfaction survey, but lowest in predictive industry reliability due to consumer-reported problems with its early vehicles.

That’s unusual for an automotive brand. Typically, the more problems a brand has, the lower its customer satisfactions rank — but not Rivian.

Advertisement

It’s a testament to the brand Scaringe, a 43-year-old automotive enthusiast and tech entrepreneur, has built. That kind of customer satisfaction is also harder to maintain as a brand grows, which is Rivian’s goal with the R2.

Why the R2 could be Rivian's key to profitability

The new SUV is meant to transform Rivian from a niche EV manufacturer that sells luxury vehicles — largely in California and states where electric vehicles sell well — to a more mainstream brand that can not only compete against U.S. EV leader Tesla but with broader mainstream automotive brands such as Jeep and Subaru.

“Its goal is for it to be a high-volume product,” Scaringe told CNBC. “Certainly, we’re going to draw on some Tesla customers, but the market of non-Tesla customers is many, many times larger.”

Wall Street analysts have described the R2 as Rivian’s make-or-break moment, comparable to Tesla moving from its pricey, first-generation EVs to the mainstream Model 3 and Model Y that currently dominate the U.S. market.

Scaringe doesn’t object to such a categorization.

Advertisement

“When you build a company from scratch, everything is make or break. There is no company if things don’t work,” he said. “Saying that it’s ‘make or break,’ it’s like, of course, it is.”

Rivian R2 will be cash-flow positive

Rivian is also hoping to achieve its main goal with the R2: profitability. The EV maker lost $3.6 billion last year, while only delivering 42,247 vehicles.

After promising investors it would be profitable on an adjusted basis by 2027, Rivian earlier this year withdrew that target without disclosing a new time frame to achieve the milestone. That comes as its automotive segment lost about $6,000 per vehicle it delivered during the first quarter of this year.

Scaringe reconfirmed to CNBC that Rivian now expects to accomplish the target once a multibillion-dollar plant in Georgia ramps up. It’s slated to begin production in late 2028 and could reach its full capacity by the end of this decade.

Advertisement

Exterior of Rivian’s new all-electric R2 SUV.

Michael Wayland / CNBC

Scaringe said Rivian will reach profitability on a per-unit production basis with the R2 this year. But he said the company needs more scale than the 160,000 units already planned for the vehicle at its current plant in Normal, Illinois, to achieve gross margin profitability.

“Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything,” Scaringe said. “The good news is we start to really reduce our burn rate. That’s the beauty of volume, and these vehicles all being cash flow positive at a vehicle level.”

Advertisement

Once the Georgia plant is fully operational, the company’s production is expected to include the R1T pickup, R1 and R2 SUVs, R3 crossover, robotaxis and delivery vans. The company also has said it plans to offer additional vehicles based on the R2 platform.

Despite the R2 looking similar to its nearly $80,000 R1S SUV, Rivian said it has cut the vehicle’s build material costs in half, reduced production complexity and achieved other major efficiency gains.

Scaringe said every R2 model — with starting prices ranging from roughly $45,000 to $58,000 — will be cash-flow positive for the company: “This is a requirement. Every single vehicle is gross margin positive,” he said.

That positive cash flow includes its $45,000 entry-level model that the company moved up after facing online backlash for the timing.

Advertisement

Scaringe during a media roundtable said the change was made to address potential perception concerns about the R2 being a more expensive vehicle as well as a “desire to get it out there.”

“As much as the base trim gets a lot of attention, very few people actually end up buying it,” Scaringe said. “It doesn’t affect the economics of the business that much, but it generates so much noise.”

Tesla Model Y leads sales

Once full production of R2 is online, Scaringe said, the company expects the sweet spot for sales to be in the low $50,000s, which Cox Automotive reports would put it slightly above the U.S. average selling price of $49,000 and below the average EV selling price of more than $55,000.

That pricing and the vehicle’s size place it in the heart of the compact and mid-size SUV markets, which Cox Automotive reports accounted for 45% of U.S. sales last year.

Advertisement

Interior of Rivian’s new all-electric R2 SUV.

Michael Wayland / CNBC

For EVs especially, the Tesla Model Y dominates in the U.S. Cox Automotive estimates Tesla, which does not report sales by region, sold more than 357,500 Model Y units, or roughly 40% of the U.S. EV market, in 2025.

“I think it’ll do well. Rivian has a strong brand and there’s room for another compelling vehicle, especially in that midsize segment,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive, which is an investor in Rivian. “It’s not just EV, they’re going to try to compete and pull from [internal combustion engine] vehicles as well.”

Advertisement
Stock Chart IconStock chart icon
hide content

Rivian stock in 2026

Challenges for Rivian remain abundant, Valdez said. In addition to slower-than-expected EV adoption and lack of charging infrastructure, the company also needs to prove it can ramp up production quickly without quality issues.

Of the non-EVs in the segments, the Toyota Rav4 and Honda CR-V lead the compact SUV segment, while the larger Ford Explorer and Jeep Grand Cherokee lead midsize SUVs.

Advertisement

“We want people to look and just say … ‘it’s the best car in that price range,’ and by virtue of that, it’ll draw new customers, non-EV customers,” Scaringe said.

To do so, Scaringe believes, Rivian will also need to become a leader in software and in-vehicle technologies such as automated driving and artificial intelligence.

Rivian received outside validation for its emerging technology efforts in the form of a $5.8 billion deal with Volkswagen that includes putting Rivian’s software and electrical architecture in the German automaker’s future EVs.

Exterior of Rivian’s new all-electric R2 SUV.

Advertisement

Michael Wayland / CNBC

Volkswagen is now Rivian’s largest shareholder, followed by longtime backer Amazon, which remains its largest customer for delivery vehicles.

The R2 will launch with an advanced driver-assistance system, or ADAS, that will largely control itself under certain conditions with driver monitoring, but it will not have an AI voice assistant until later this year. Both systems will continue to be updated through over-the-air updates, according to Rivian.

Scaringe said he views the company’s emerging software services as being just as important as the vehicles.

Advertisement

“You need them both. It’s like asking is the heart or the brain more important in a human. You can’t survive without both,” Scaringe said. “It’s a false binary. I don’t see them as separate.”

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

Academy Sports and Outdoors, Inc. 2027 Q1 – Results – Earnings Call Presentation (NASDAQ:ASO) 2026-06-09

Published

on

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

This article was written by

Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team

Continue Reading

Business

BodyArmor adds canned sports beverage

Published

on

BodyArmor adds canned sports beverage

The RTD beverage is offered in five flavors. 

Continue Reading

Business

SpaceX employees create low-fee Choreo wealth management plan for post-IPO

Published

on

SpaceX employees create low-fee Choreo wealth management plan for post-IPO

SpaceX signage outside the Space Exploration Technologies Corp. facility in Hawthorne, California, on June 3, 2026.

Michael Yanow | Nurphoto | Getty Images

A group of current and former SpaceX employees who joined forces to manage their post-IPO wealth has created a new, low-fee advisory option with Choreo, according to people familiar with the agreement.

Advertisement

The employee group has more than 100 members and represents potential wealth of between $1 billion and $5 billion, according to the people, who spoke on the condition of anonymity to discuss confidential agreements. What began as an informal chat forum focused on philanthropy has grown into a broader effort to create more efficiencies and better access to financial advice using their combined wealth from their post-initial public offering windfalls, the people told CNBC.

A small team representing the group evaluated potential firms and created a new wealth management offering with Choreo that members can opt into. Choreo, a Chicago-based registered investment advisor, says on its website it has more than $28 billion in assets under management and advisement, 40-plus offices, and 200 wealth advisors.

Details and specific terms remain confidential, yet the sources told CNBC there will be a minimum annual fee or an annual management fee of under 0.5% of assets under management. Any fee below 0.5% could undercut the industry standard of between 0.5% and 1%. The Choreo fee structure is for a long-term agreement rather than a one-time promotional offer.

Choreo didn’t immediately respond to a request for comment.

Advertisement

The deal marks a bold experiment in the wealth management industry that could shift the balance of power from advisory firms to wealthy groups of investors.

Wealth management firms have typically set their fees based on an individual’s or family’s wealth levels, offering a sliding scale based on investible assets. By joining forces, the SpaceX employees and alumni employees are proving they can use their collective financial scale to secure an option for better terms.

Get Inside Wealth directly to your inbox

The agreement also highlights the unprecedented power of the SpaceX IPO — establishing vast numbers of newly minted millionaires who were paid in stock as well as creating one of the most sought-after liquidity prizes in the wealth management industry.

The Elon Musk-led rocket company is set to debut at the Nasdaq on Friday.

Advertisement

The vast majority of SpaceX employees – many of them engineers who were paid below-market salaries in return for stock – have never had large wealth to manage.

By reducing fees, members of the SpaceX group hope to be able to devote more of their fortunes from the SpaceX IPO to philanthropy, the people said.

In the forum, many of the SpaceXers have been sharing advice and contacts on how best to use their new wealth to give back to their communities, the people familiar said. Some indicated they are considering creating scholarships and funding for the colleges and universities where they were trained and educated. Others have said they want to fund new programs that give children better access to engineering, science and math programs.

Employees of Anthropic, which recently filed confidential plans to go public, are also in discussions with advisory firms about a potential collective option, the people familiar told CNBC.

Advertisement
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Continue Reading

Business

Second Nature Brands snags Tillamook Country Smoker

Published

on

Second Nature Brands snags Tillamook Country Smoker

The acquisition marks the company’s entrance into the protein snacks category. 

Continue Reading

Business

Boar’s Head introduces pickle snacks

Published

on

Boar’s Head introduces pickle snacks

The packaged snacks are available in three varieties. 

Continue Reading

Business

NSE to route 10% of CSR spending through Social Stock Exchange after regulatory green light

Published

on

NSE to route 10% of CSR spending through Social Stock Exchange after regulatory green light
NSE will earmark 10% of its annual corporate social responsibility (CSR) corpus for projects listed on the NSE Social Stock Exchange (SSE), becoming one of the first major institutions to commit a portion of its CSR spending through the platform.

The exchange announced the move on Tuesday following recent regulatory changes that allow companies to undertake CSR expenditure through subscription to Zero Coupon Zero Principal (ZCZP) instruments listed on Social Stock Exchanges.

NSE said its CSR Committee had agreed in principle in March 2026 to deploy 10% of the annual CSR corpus through the SSE framework, subject to regulatory approval. The decision has now been operationalised after the Ministry of Corporate Affairs issued notifications on May 27 enabling such investments.

The move is aimed at strengthening India’s social impact financing ecosystem and encouraging greater use of regulated capital market platforms for funding social sector projects.

Advertisement

NSE Chairman Injeti Srinivas welcomed the government’s decision to allow CSR funds to be routed through Social Stock Exchanges.


He said the framework would improve transparency, visibility and accountability of CSR spending while helping channel funds towards credible social initiatives.
The exchange expressed hope that other large corporate CSR contributors would adopt a similar approach, helping scale up impact financing in the country.The Social Stock Exchange framework was introduced by Sebi to create a regulated fundraising platform for non-profit organisations and social enterprises. The NSE Social Stock Exchange was launched in February 2023.

Since inception, NSE-SSE has facilitated all Social Stock Exchange fundraising issuances in India. According to the exchange, 16 projects, including two joint listings, have collectively mobilised more than Rs 44.5 crore across sectors such as healthcare, education, women empowerment, climate action, poverty alleviation, skilling and sustainable livelihoods.

The latest announcement comes shortly after the government expanded the scope of permissible CSR activities through the SSE route, a move seen as a significant step towards deepening social impact investing in India.

The regulatory change could unlock a new source of funding for non-profit organisations by connecting them with corporate CSR budgets through a transparent and market-linked mechanism. The decision is also expected to provide greater visibility to social projects while enabling companies to track the deployment and outcomes of their CSR spending more effectively.

Advertisement

With NSE itself committing part of its CSR corpus through the platform, the exchange is positioning itself as an early adopter of the Social Stock Exchange model while seeking to encourage broader participation from corporate India.

Continue Reading

Business

Promoter sells Rs 1,024 crore worth of Ajanta Pharma shares in block deal to Kotak MF and ABSL MF

Published

on

Promoter sells Rs 1,024 crore worth of Ajanta Pharma shares in block deal to Kotak MF and ABSL MF
A promoter entity of Ajanta Pharma sold shares worth over Rs 1,024 crore through a block deal on Tuesday, with domestic mutual funds emerging as the buyers. According to NSE block deal data, Ravi Agrawal Trust sold 34.5 lakh shares of Ajanta Pharma at Rs 2,968 per share. The transaction was valued at about Rs 1,024 crore.

The shares were picked up by two domestic fund houses. Kotak Mahindra Mutual Fund acquired 21.02 lakh shares, while Aditya Birla Sun Life Mutual Fund purchased 13.48 lakh shares. Both transactions were executed at the same price of Rs 2,968 per share.

Ajanta Pharma is a specialty pharmaceutical company with a presence across branded generics, emerging markets and select developed markets. The company has built a strong franchise in therapeutic segments such as ophthalmology, cardiology, dermatology and pain management, while also expanding its footprint in international markets.

The company has been one of the stronger performers in the pharmaceutical space, benefiting from steady earnings growth, healthy margins and a robust balance sheet. Investors have also favoured the stock due to its focus on branded formulations and relatively limited exposure to pricing pressures in the US generics market.

Advertisement

Ajanta Pharma reported good fourth quarter results, with revenue and EBITDA coming in 1-3%, ahead of analysts estimates. PAT was 23% higher than the views, helped by higher Other income and a lower tax rate. US generics business sustained robust growth momentum, up 47% YoY in USD terms


“We raise our FY27E-FY28E core earnings estimates by 2%. AJP trades at 31.2x FY27E core P/E. We retain our target price at Rs 3,115 based on 29.9x FY28E core P/E plus cash per share. We retain our Accumulate rating. Geopolitical disruptions to the business and a spike in raw materials price & freight cost are key risks to our call. We introduce FY29 estimates,” Elara Capital said post the earnings.

Continue Reading

Business

NextDecade: The LNG Upside Is Worth The Risk (NASDAQ:NEXT)

Published

on

NextDecade: The LNG Upside Is Worth The Risk (NASDAQ:NEXT)

This article was written by

I’m an independent equity trader and licensed financial advisor focused on uncovering high-upside opportunities in overlooked sectors especially focusing on small-caps, energy, commodities, and special situations. My investment strategy is based on growth. I look for fundamental momentum (EPS, ROE, revenue), price-volume confirmation, and macro filters. I also use econometric tools and calculations to analyse market direction, cycles and behaviour. I’ve been managing personal capital since 2020 and advising under MiFID II since qualifying with a license. I hold a bachelor’s in Business Administration and Economics and am currently completing a master’s in Finance. My masters thesis topic: Impact of Financial Results Announcements on Stock Returns and Trading Volumes of Micro-Capitalization Gold Mining Companies.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Advertisement
Continue Reading

Business

Warren Buffett’s surprisingly simple advice for new investors entering the stock market

Published

on

Warren Buffett's surprisingly simple advice for new investors entering the stock market

Over the past 30 years, the S&P 500 index has generated a total return of 1,770% (as of June 5). That performance supports the view that the stock market is one of the best asset classes for growing your wealth. A starting sum of $10,000 in this benchmark in June 1996 would be worth $187,000 today. The gains have been even more remarkable over the past decade.

Understanding that this kind of performance can have a profound impact on your financial well-being, it might be time for new investors to direct some of their savings into the stock market. Given how daunting it might seem, it can be difficult to figure out where to even begin.

Advertisement

Here’s where Warren Buffett comes into the picture. The great investor is also a wonderful educator whose advice is well worth considering. If you’re new to the stock market this month, listen to the Oracle of Omaha’s suggestion.

WARREN BUFFETT ERA ENDS AFTER 60 YEARS AS CEO WITH GREG ABEL TAKING OVER

Warren Buffett speaking

Warren Buffett stepped down as CEO of Berkshire Hathaway late last year after a 60-year run. (Daniel Zuchnik/WireImage)

Keep it simple

Buffett is known for his exceptional capital allocation skills, having compounded Berkshire Hathaway’s share price at a yearly clip of almost 20% for six decades before stepping down as CEO at the end of last year. But his advice for most investors is surprisingly simple. He basically recommends buying a low-cost S&P 500 index fund.

This perspective probably comes from the fact that the average person doesn’t have the time, ability or desire to want to pick individual stocks and manage a portfolio. And it stems from the inability of expert fund managers to beat the market.

Advertisement

THIS SECTOR HAS DOMINATED ETF RETURNS SO FAR IN 2026

Active management strategies generally have a bad track record. Data shows that the vast majority of large-cap fund managers lose to the S&P 500 over the long term. Whether these professionals trade too often, charge high fees or just aren’t adept portfolio managers, that is a very disappointing statistic. And it makes you wonder why more investors don’t choose the passive route.

Traders work on the floor of the New York Stock Exchange.

Over the past 30 years, the S&P 500 index has generated a total return of 1,770%, as of June 5. (Spencer Platt/Getty Images)

Consider this popular exchange-traded fund

One of the best options is the Vanguard S&P 500 ETF. It comes with an extremely low expense ratio of 0.03%. Over several years and decades, investors will pay a significantly smaller amount than what active managers typically charge. The difference leaves more money in your pocket.

Ticker Security Last Change Change %
VOO VANGUARD S&P 500 ETF – USD DIS 679.68 +1.68 +0.25%

This ETF tracks the S&P 500 index, so its holdings match the benchmark. The top five holdings are Nvidia, Apple, Microsoft, Amazon and Alphabet, clearly showing a strong position within the information technology sector. Investors will certainly be exposed to all things related to artificial intelligence.

Advertisement

However, it’s worth pointing out that this ETF contains all sectors of the economy. It’s essentially a hassle-free method for gaining broad market exposure.

Maintain a long-term perspective

The S&P 500 index today trades at a historically expensive valuation, calling into question the benchmark’s return potential. While the phenomenal trailing 10-year total return of 316% might not repeat, I think it still makes sense to invest in the stock market.

TAP INTO THE HUMANOID ROBOTICS BOOM WITH THIS ETF

Profit growth and margins are robust. And the companies leading the charge, some of which were mentioned already, are some of the most dominant businesses the world has ever seen, so they deserve the market’s appreciation.

Advertisement
Ticker Security Last Change Change %
NVDA NVIDIA CORP. 208.64 +3.54 +1.73%
AAPL APPLE INC. 301.54 -5.80 -1.89%
MSFT MICROSOFT CORP. 411.74 -4.93 -1.18%
AMZN AMAZON.COM INC. 245.22 -0.81 -0.33%
GOOGL ALPHABET INC. 363.31 -5.00 -1.36%

If the current valuation is a real concern for you, then consider adopting a dollar-cost averaging (DCA) strategy. By doing so, you could allocate fresh savings to the market on a monthly or quarterly basis, virtually eliminating the need to accurately assess what the correct starting valuation should be.

And even adding small sums of money to a DCA approach can lead to tremendous long-term results. Let’s say you initially invest $10,000 into the Vanguard S&P 500 ETF. But then every single month, you invest $100. Assuming the historical 10% annualized total return holds true, you’d have $382,000 after 30 years. Of course, if you put more money to work, the ending figure will be larger.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Advertisement
Continue Reading

Business

Nurri debuts child-focused protein beverage

Published

on

Nurri debuts child-focused protein beverage

Each shake contains 10 grams of protein. 

Continue Reading

Trending

Copyright © 2025