Rivian Had Explosive Growth In Hottest U.S. EV Market

While Tesla’s growth in California often makes news, Rivian’s recent surge has not.

Rivian appeared on the radar of The California New Car Dealers Association (CNCDA) for the first time in the second quarter — and very conspicuously.

The Irvine, Calif-based electric pickup and SUV manufacturer had by far the highest growth rate of any car manufacturer in California in the first six months of 2023, according to figures released for new vehicle registrations by the CNCDA.

Rivian grew almost 200 percent year over year in California in the year through June, the CNCDA said.

These figures were originally released in July. California is the largest electric vehicle market in the U.S.

For the second quarter alone, Rivian registrations grew 156%, from 870 units to 2,225, the CNCDA said.

Earlier this year, Rivian said it delivered 12,640 vehicles and produced 13,992 in the second quarter of 2023, representing a nearly 50% increase in production as compared to the prior quarter.

Rivian’s hottest vehicle this year is the R1S SUV. The company began taking orders for a new, cheaper dual-motor variant in July (Electrek).

Rivian’s future growth is pegged to its upcoming R2 platform due by 2026, CEO RJ Scaringe said earlier this year. The R2 platform is expected to result in a smaller and cheaper SUV and pickup starting as low as $40,000. A development that could transform the company into a volume manufacturer of EVs.

Rivian has emerged as a brand that consumers are considering as a Tesla alternative. A Bloomberg survey on Tesla published July 26 listed the top choices by Model 3 owners who are thinking about purchasing a non-Tesla brand in the next two years. Shoppers were taking a close look at Rivian “whose R1S SUV and R1T pickup were the top two models among alternative brands [to Tesla],” the publication said.

The R1S was the leading model, garnering a 34.1% “popularity” rating (as a Tesla alternative), more than twice that of the Ford F150 Lightning electric. The Rivian R1T pickup was listed second behind the R1S.

In California, Rivian vehicles are catching on at popular recreation locations such as Lake Tahoe, where the brand has become the off-road-capable EV of choice for many visitors and residents.

In other news, Rivian’s stock was a bullish “fresh pick” by Baird (MarketWatch) analyst Ben Kallo. Rivian will report on deliveries next week. Kallo expects the EV manufacturer to beat Wall Street forecasts as it sees cost benefits “from an improving supply chain and the use of in-house components,” according to Kallo.