Rivian makes the long-lasting American automotive — however that will not be sufficient

The storm developed shortly over west central Illinois on April seventeenth, first as a single high-intensity system referred to as a supercell, after which later that night reworking into an extended squall line of thunderstorms. Tucked inside a wall of wind have been a number of smaller, quick-forming tornadoes, certainly one of which landed immediately on Rivian’s electrical automobile manufacturing facility on the outskirts of the faculty city of Regular. The ferocious storm knocked down one of many partitions and tore via the plant’s roof like a can opener peeling again the lid.

Bobby Dean Parker, vice chairman of producing at Rivian, was at house in Regular when he acquired the decision from somebody on the manufacturing facility. Parker, an affable Southerner, had already skilled his fair proportion of highly effective Midwestern thunderstorms regardless of solely being on the job for six months. However he shortly realized that this one was totally different. “Hey, it’s not good,” the individual on the cellphone informed him. “Oh shit,” Parker thought, earlier than dashing out into the still-stormy night time.

Hundreds of miles away at an occasion in Southern California, Rivian CEO RJ Scaringe’s cellphone out of the blue lit up with a flurry of texts. At first, data was scarce. Was anybody harm? How dangerous was it? Scaringe was reluctant to ship anybody inside to evaluate the injury with out realizing the structural integrity of the constructing. Then somebody despatched him a video.

Even at nighttime, you’ll be able to instantly see a large gap within the manufacturing facility’s roof. The facility is out, so floodlights illuminate the wreckage. Water might be heard dashing within the background; the twister triggered the plant’s sprinkler system, inflicting the pits beneath the meeting line to flood. The concrete ground can be slick with water. The injury seems fairly intensive.

Scaringe was surprised; his manufacturing facility out of the blue had what gave the impression to be its personal sunroof.

A wide view of a factory interior is mostly dark with a large open wall in the back where you can see to the bright daylight outside. A construction vehicle is in the center and debris can be seen hanging down.

For Rivian, the twister couldn’t have hit at a worse time, or in a worse place. Not solely did it strike proper as the corporate was poised to roll out its all-important, extra inexpensive R2 automobile, the storm landed immediately on the part of the manufacturing facility the place manufacturing for the midsize SUV was set to start in a matter of days.

Since bursting on the scene eight years in the past with a pair of thrilling, luxury-priced EVs, Rivian has cultivated an impassioned fan base and earned lots of goodwill within the {industry}. And whereas the corporate seems to have executed many issues proper in its brief historical past, all of its hopes for the long run are at the moment pinned to the R2 mannequin. These subsequent few months are particularly essential. Rivian must ramp up manufacturing for the R2, hit all of its targets, and get the automobile to prospects in what’s arguably the harshest local weather for electrical automobiles because the first battery-powered fashions arrived almost 20 years in the past.

In contrast to most of the forces at the moment bearing down on Rivian, threatening its very existence, all of the twister did was blow a gap in its manufacturing facility. The roof might be repaired, the particles swept away, the pits pumped out. However as for the myriad of existential challenges at the moment dealing with Rivian, the repair received’t be really easy.

An aerial view of Rivian’s huge factory with rural land seen behind it and cars parked in its circular driveway in front.

The first makes an attempt at fashionable, business electrical automobiles within the US date again to the ’90s. These have been largely compliance vehicles, constructed by main automakers to fulfill California’s strict emissions rules however not meant for vast launch. The compliance vehicles have been adopted by a string of uninspiring mass-market fashions just like the Nissan Leaf and Chevy Volt, a pair of egg-shaped financial system sedans that projected an electrified future that was inoffensive and characterless — a automotive for individuals who don’t need to take into consideration vehicles.

However Tesla took a wholly totally different method with its Roadster, adopted by the Mannequin S and Mannequin X, which might develop into the primary professional and commercially interesting EVs. The S was a luxurious sedan, and although it needed to persuade consumers that the quiet hum of an electrical engine was extra highly effective than the roar of an inside combustion engine, Tesla had well focused a client that truly needed a automotive that seemed like a pc — and would spend some huge cash on it.

Issues actually acquired rolling after Tesla launched the Mannequin 3 in 2017, after which the Mannequin Y in 2019. 4 years later, the Mannequin Y would develop into the best-selling automotive on this planet, a title it reportedly retained for the subsequent two consecutive years.

EVs have been initially considered a distinct segment product, one thing for virtue-signaling bevested Silicon Valley varieties excessive on their very own provide about “altering the world,” however hardly as an answer for the perils related to local weather change. It wasn’t till Elon Musk began framing Tesla’s mission round accelerating the world’s transition to sustainable power that EVs got here to be considered as a important piece of the puzzle. However Tesla’s success was by no means a foregone conclusion. In spite of everything, no new American automotive firm had ever emerged to problem Detroit’s Large Three (Ford, GM, and Chrysler/Stellantis) in reaching sustained, worthwhile quantity manufacturing in almost a century.

Musk’s unprecedented success kicked off a worldwide race for electrification. Legacy automakers have been pushed to pivot their long-term methods, restructure their manufacturing strains, and construct ground-up EV platforms to outlive. In China, corporations like BYD, Nio, Xpeng, and Li Auto shortly adopted Tesla’s EV- and software-first enterprise fashions. And a brand new class of EV startups emerged, aiming to repeat Musk’s luxury-to-mass-market rollout technique.

A type of corporations was Rivian. Based as Mainstream Motors in 2009, the corporate would go on to nice approval for its adventure-themed R1T and R1S electrical truck and SUV, respectively. If Tesla had produced the primary interesting EV sedan and crossover, Rivian had executed the identical for the pickup and full-size SUV. An early $700 million funding from Amazon alongside a formidable order for 100,000 electrical supply vans helped solidify the corporate’s status as one of many extra severe gamers. In contrast to a lot of the different EV startups to emerge on the time, Rivian appeared to have a vibrant future. Whereas most corporations, Tesla included, targeted on sedans and hatchbacks, Rivian focused the booming truck and SUV market. Branding itself because the “Patagonia of pickups,” Rivian sought to attraction on to prosperous, outdoorsy varieties.

However within the years since Rivian first emerged, the temper round EVs has soured dramatically. Charging woes, vary anxiousness, and sky-high luxurious costs stored most individuals at arm’s size from the EV market. Lengthy earlier than Donald Trump was elected the second time on a promise to eradicate the fictional “EV mandate,” clouds have been looming on the horizon.

A silver Rivian R1T is on display with the door to the “Rivian Gear Tunnel” open.

It’s undoubtedly a bizarre second. On one aspect, Rivian is unveiling the brand new R2 to large anticipation, Tesla remains to be pumping out Mannequin Ys at scale, and EV adoption numbers are persevering with to develop globally — thanks partly to a tidal wave of inexpensive Chinese language exports. On the opposite aspect, you’ve acquired an avalanche of cancellations, pauses, and write-downs that makes the entire thing really feel prefer it’s falling aside.

Tesla’s Mannequin Y continues to be an authorized international phenomenon. Regardless of Musk’s sky-high unpopularity and the corporate’s numerous missteps, Tesla has outperformed better-capitalized opponents like Volkswagen and Toyota to promote over 1 million Mannequin Ys in 2025 alone, proving that there’s a actual urge for food for well-designed, spacious, zero-tailpipe-emission automobiles.

Whereas Tesla soaked up the highlight, Rivian was struggling to keep up its foothold, dropping billions of {dollars} yearly whereas attempting to maintain up manufacturing of its R1 automobiles. Then, earlier this 12 months, the corporate rolled as much as SXSW with its first pre-production R2s, a genuinely attainable household automotive that begins at beneath $50,000, constructed by an organization that lots of people appear to genuinely love and that has discovered methods to make fascinating EVs at scale, even when it’s nonetheless determining how to take action sustainably. The excitement round Rivian started to swell. Followers have been satisfied this could be the corporate’s Mannequin Y second as they flocked to get one for themselves. Rivian shortly racked up an estimated 200,000 reservations for the R2 — falling wanting Tesla’s 450,000 reservations for the Mannequin 3, however nonetheless a sign of widespread pleasure.

A Rivian R2 with a green hood is displayed on top of a large dirt mound in the city center as part of an activation for South by Southwest.

The R2 will arrive at a very brutal second for EVs. Over a dozen automakers are strolling away from their EV plans. Ford canceled the F-150 Lightning. Honda killed its Zero sequence of electrical automobiles, in addition to its Afeela collaboration with Sony. Mercedes reined in its EV output. VW idled the ID.4 and ID.Buzz. Nissan axed the Ariya. A lot of these aforementioned EV-only startups, like Fisker, Canoo, Lordstown, Proterra, Arrival, and Sono Motors, ended up stillborn. It will appear that the highway to the EV future is lined with sinkholes.

Not even Musk and his indelible model have been immune. Tesla’s annual gross sales have dropped two years in a row — however Rivian’s decline was even steeper. In 2025, the corporate solely bought 42,247 automobiles, an 18 p.c lower in comparison with 2024. It’s by no means earned an annual revenue, and continues to lose upwards of $8,000 in gross revenue for each automobile it builds and delivers, in keeping with its earnings stories.

Globally, the auto {industry} has booked over $70 billion in write-downs associated to their EV investments prior to now 12 months. The explanations are a mixture of issues converging on the worst time. President Donald Trump, a longtime good friend and beneficiary of the fossil gasoline {industry}, eradicated the $7,500 federal EV tax credit score simply as EV demand within the US was actually taking off. Tariffs made the import of overseas EVs, particularly inexpensive Chinese language fashions, almost unattainable. Regulatory credit, which have been a lifeline for pure EV corporations like Tesla and Rivian, netting them lots of of thousands and thousands of {dollars} in income every quarter, are additionally kaput. We’re in an period of maximum worth sensitivity for shoppers, and plenty of electrical fashions are nonetheless simply too costly. And lots of automakers constructed EVs that have been rushed, not superb, or gasoline fashions retrofitted to run as electrical.

The stakes for Rivian are large. Beginning at round $45,000, the R2 is designed to catapult Rivian to the subsequent stage of automotive success. If it’s successful, then Rivian can be effectively positioned to problem Tesla’s standing as a very powerful EV firm in America. A profitable R2 would beget the R3, and extra importantly the R3X, a rally-inspired off-roader with the playful, nostalgic design of an ’80s sizzling hatch. The R3X has been getting nothing however reward because it was first revealed, serving to the corporate earn an infinite quantity of goodwill that it’s hoping to maintain lengthy sufficient to make it to manufacturing. However will it ever come out? Every thing will depend on the success of the R2.

Two Rivian R2’s with headlights on are displayed, the first is white and the one behind is blue.

“That is arguably their greatest make-or-break second but,” Ed Kim, president and chief analyst at AutoPacific, tells me. “That is the place Rivian goes from providing a small lineup of very costly, massive EVs that may stand up to the six-figure vary, right down to a very mainstream-priced EV that begins within the $40,000 vary — which is definitely effectively beneath the median worth of a brand new automobile nowadays, which is about $50,000. So right here we now have Rivian’s actually first huge quantity play taking place right here.”

If the R2 flops, the corporate’s struggles would deepen. Rivian is coasting on its buzz and fan love, although a wealth of technical points and {hardware} faults have labeled its R1S SUV as one of many least dependable automobiles in the marketplace. Like each different automotive firm, Rivian is making an attempt to navigate an more and more tumultuous and unpredictable international provide chain. The corporate is burning almost lots of of thousands and thousands of {dollars} 1 / 4 because it stands up its R2 manufacturing line, whereas breaking floor on a brand new manufacturing facility in Georgia. It’s pushed again its expectations for profitability to account for large investments in AI and autonomous driving expertise. And the R2 is about to enter an auto market beset by worth anxiousness and an outwardly hostile regulatory surroundings.

Rivian’s staunch supporters can’t assist however inject extra hype within the second. “I’m actually excited in regards to the R2!” John Krafcik, the previous CEO of Waymo who now sits on Rivian’s board of administrators, tells me. “I believe it will possibly reset the complete auto {industry} the best way the XJ Cherokee did within the ’80s.”

A long line of car doors are suspended along the edge of the Rivian Factory.

The Rivian Manufacturing facility in Regular, Illinois, on April twenty second.Photograph: Anthony Tahlier / The Verge

A person wears a black and yellow reflective vest with Rivian written on the back.

The Rivian Manufacturing facility in Regular, Illinois, on April twenty second.Photograph: Anthony Tahlier / The Verge

A white Rivian in between computer equipment seen from behind at the factory.

The Rivian Manufacturing facility in Regular, Illinois, on April twenty second.Photograph: Anthony Tahlier / The Verge

Detail of the sides of three Rivians in a line on the factory floor.

The Rivian Manufacturing facility in Regular, Illinois, on April twenty second.Photograph: Anthony Tahlier / The Verge

Extra than simply this EV, the promise of American {industry} is that innovation breeds profitable companies. There’s a primary logic: Make product and folks will purchase it. It’s an concept that’s simple to know however arduous to execute. Rivian has demonstrated its prowess as a low-volume, premium firm. However the headwinds — coverage shifts, regulatory overhang, tariffs, rising prices, competitors from China — are proving to be sturdy, maybe much more highly effective than a twister.

5 days after the twister hit, I’m standing on a catwalk surveying the wreckage of Rivian’s manufacturing facility. The opening remains to be there, although now there’s a makeshift plywood fence surrounding the broken space. The extent of the destruction is immense and staggering to see in individual. An enormous part of the roof has collapsed. A lot of the outer wall is gone, giving me a full view of the highway outdoors the manufacturing facility, inexperienced grass, and past that, cornfields. A remaining piece of roof is dangling precariously dozens of ft within the air. Different items lie twisted in obscene shapes on the bottom.

A yellow excavator works slowly outdoors to clear the realm. It’s very a lot nonetheless an energetic cleanup scene. Rivian plans to put in an autonomous system within the excavator to assist velocity alongside the cleanup course of, Tony Sanger, VP of manufacturing amenities, tells me.

The twister tore a gap proper above the logistics part, the place vans drop off tools and numerous provides — mainly a loading dock. After photographs of the injury surfaced on Reddit, commenters obtusely famous the absence of any accomplished automobiles, as if that someway proved that Rivian was not on time on the R2.

However Scaringe insists that the corporate remains to be on schedule and has no plans to decrease its steering on the variety of automobiles it expects to promote this 12 months. Which isn’t to say that nothing vital was broken. They’ll nonetheless have to verify on almost 300 conveyor drives that have been flooded by the sprinkler system to see if any must be swapped out.

Regardless of these setbacks, Scaringe seems like they dodged a bullet. He says he feels extraordinarily fortunate the twister landed when and the place it did, and never, say, on prime of the particular R2 meeting line throughout work hours. Whereas the injury is critical, it’s not insurmountable. Rivian will bounce again — is presently bouncing again, he argues. The manufacturing facility lights got here again on April twenty first for the primary time because the storm. The pits have been pumped out. The ground has been dried and swept. The R2 is prepared. Full steam forward.

“We may have are available and been somber about it,” Scaringe says. “However everybody’s identical to, ‘Okay, let’s go repair it.’”

Hours earlier, I used to be standing on the manufacturing facility ground subsequent to one of many first totally assembled R2s, introduced in a classy blue colour that the corporate calls Catalina Cove. For such an vital automobile, the R2 is surprisingly unassuming. It’s smaller and lighter than Rivian’s flagship R1 automobiles, because it was designed to be considerably extra environment friendly and cost-effective to fabricate. The R1T and R1S each begin within the low-$80,000 vary, however might be optioned up a lot greater. The R2 begins at $45,000, although that model received’t be accessible till late 2027. Nonetheless, it’s undoubtedly a Rivian, proper right down to the pleasant oval headlights and flashlight tucked within the door body.

A wide and high view of the factory floor where yellow machine arms are seen lifting and working on unspecified car parts.

A couple of years in the past, a meme circulated that includes two dozen or so white SUVs, all dealing with the identical means and searching virtually indistinguishable from one another. The implication was that each one fashionable vehicles look alike, and because of this, individuality and design in cars was useless. You may argue with the veracity of that declare, however one of many causes Tesla made such a splash within the mid-2010s was that it went in a distinct route, designing its vehicles for smooth, aerodynamic effectivity, particularly at a time when automobile profiles have been aggressively boxy. Nothing else actually seems like a Tesla.

In contrast, Rivian borrowed closely from different automakers, like Jeep and Land Rover, however with a rounder, softer edge. General the corporate’s design ethos is decidedly friendlier, with the aforementioned oval headlights and a plethora of Easter eggs. On the R2, proper subsequent to the windshield wiper fluid cap, there’s a small molded engraving of a cross between a frog and a skunk — a “frunk,” additionally the nickname for the entrance trunk that’s frequent in EVs. The corporate’s automobiles do job mixing midcentury fashionable design aesthetics with the utilitarian wants of an off-roader and the clear minimalism most frequently related to way of life manufacturers. However there’s additionally a little bit of Star Wars in there, even some WALL-E and solarpunk. It’s what endears Rivian to so many individuals.

At 8:30 within the morning, the manufacturing facility ground is teeming with Rivian employees, most of whom are sporting matching olive inexperienced T-shirts that learn “Hold Regular Adventurous Endlessly.” OneRepublic’s “I Ain’t Fearful” is blasting over the sound system. Workers are inspired to take as many selfies with the R2 as they need. The temper is understandably festive. They simply acquired hit by a twister, however they ain’t apprehensive ’bout it.

Scaringe grabs the microphone and begins by thanking everybody for his or her arduous work, particularly within the aftermath of the storm. Along with his thick frames, neatly parted darkish hair, and a tall, athletic construct, Scaringe resembles Clark Kent — however Steve-O from Jackass can be a good comparability. In the present day he’s traded his conventional military-style khaki shirt for a Rivian-branded darkish blue button-down. Darkish denims and a pair of On Cloud waterproof climbing boots full the look.

CEO RJ Scaringe in a blue long sleeved shirt and glasses is shaking the hand of a man in safety goggles and a green t-shirt. A group of people also in green t-shirts are around them.

“The resilience that we’ve demonstrated as a company over the past couple of days is emblematic of the power of the group we’ve demonstrated within the growth of this product,” he says to well mannered applause.

He’s not a magnetic public speaker and appears somewhat stiff at occasions. Nonetheless, he runs via his ready remarks at a gradual clip. There’s an air of “let’s make this fast.” There are vehicles to construct.

Javier Varela, Rivian’s COO, tries to amp the power ranges by repeatedly shouting “Large volumes” and “Go R2!” in his raspy Spanish accent. In contrast, Bobby Dean Parker, the VP of producing, is all Southern appeal. Parker, who minimize his tooth at BMW, Toyota, Volkswagen, and Tesla, will get arguably the largest spherical of applause from the assembled workers. He was the one who stood shoulder to shoulder with them over the previous few days throughout storm cleanup.

“In the present day, I’m not letting the twister steal the highlight from our fantastic R2 and our fantastic crew,” Parker says. “However what I’ll say is reward God that we’re not standing right here at present in a second of silence.” He pivots to the R2, which he describes as each “thrill on the highway” in addition to “luxurious on the highway.” “So, whaddaya say? Let’s get it on the highway.”

Earlier than that, the R2 must get off the meeting line. A row of three R2s await Scaringe, Varela, and Parker, one for every. They drive slowly off the road whereas high-fiving with the employees gathered alongside the sidelines. Varela honks his horn in celebration, whereas somebody shouts, “Come on Bobby Dean, give it some!” Not that there’s any room for acceleration. Nor wouldn’t it be protected to ground it whereas surrounded by lots of of individuals.

A man in a grey t-shirt and jeans holds a microphone and stands in front of a blue Rivian r2 inside of a huge, bright factory space and speaks to a crowd of people who are mostly wearing green t-shirts.

A type of individuals is Hemanth Atthipatla, a tall, pleasant high quality supervisor within the operations and manufacturing division. He calls himself a “gatekeeper” in command of policing the R2, ensuring it meets all of its high quality checks earlier than it reaches prospects. Atthipatla was additionally one of many first Rivian workers to purchase his personal R2, which is on show on the manufacturing facility at present. His spouse loves it, he stories, as does his new child baby, although it’s unclear how a child expresses approval about an vehicle.

“I believe if we’re in a position to preserve the great high quality and ramp up, and supply the automobiles to the shopper, I believe it’s going to be a deal-breaker for Rivian,” Atthipatla says.

Brittany Clauss stands out from the group together with her neon inexperienced hair and matching cheek studs. She’s been working at Rivian for 4 years, first on the R1 line and now over to R2. The primary distinction, she says, is that the R2 line is extra compact, which permits for simpler communication between the assorted stations and employees. She works on the finish of the road, checking every automobile for defects earlier than it goes off to the subsequent stage.

She doesn’t personal a Rivian herself, however says she will be able to’t wait to see the R2 out on the highway. “I’ll have the ability to level them out and be like, ‘That’s what I’ve been engaged on,’” she says.

Almost 900 miles east of Regular, the middle of the Rivian universe is within the car parking zone of Campmor, off Route 17 in Paramus, New Jersey. At the least for a dozen or so hardcore followers who’re gathered there on a brilliantly sunny Saturday in early April.

Romy Vreeland is a nonprofit govt with graying blonde hair and a welcoming smile. She’s additionally the nationwide secretary of the Rivian Golf equipment of America and host of at present’s meet and greet within the Campmor lot. Rivian Membership members go off-roading collectively, share tips on the very best tenting tools, and customarily take pleasure in a shared appreciation of the Rivian model. They just like the model, the cute-but-rugged aesthetic, and the truth that the corporate’s CEO isn’t a family identify, not to mention a lightning rod for criticism.

“It’s like, it’s not essential to know [his name],” she says of RJ Scaringe, a person she’s met solely as soon as and located to be beautiful. “It’s not a legal responsibility.”

In the present day is certainly one of their semi-regular meetups: an opportunity for Rivian house owners to get collectively and speak about their favourite electrical journey automobile, whereas hopefully changing a couple of newbies. Jeep house owners have their rubber geese. Tesla followers have their fixation on Elon Musk. Rivian house owners… are nonetheless attempting to provide you with their very own identification. They love the surroundings, but in addition are rich sufficient to afford a brand-new $80,000 electrical automobile. (It’s not dissimilar from early Tesla house owners.)

Vreeland is unloading packing containers of seltzer and donuts for the meetup. She likes to joke that the Rivian neighborhood may at occasions resemble an enthusiastic social membership however admits she regularly wonders how she’d develop into so immersed in all of it. She does love the outside, tenting, and cooking over an open fireplace. However she doesn’t think about herself a automotive individual. In spite of everything, it isn’t at all times protected for girls in these EV-themed boards on-line. Early on, she would disguise behind anonymity when chatting with different Rivian followers on Reddit or Discord.

However she made loads of associates, like Rod Gillis, the beanie-wearing finance man from Mahwah who additionally owns his personal health enterprise on the aspect. Or Steven Santora, who works in actual property, loves to observe EV content material on YouTube, and has money deposits down on three upcoming EVs, together with the R2. These are New Jersey’s most unapologetically devoted Rivianiacs.

“It’s a automobile for somebody who’s sufficiently old to afford it, however younger sufficient to have enjoyable with it,” Gillis says. “It’s a automobile that may be a jack of all trades. You may go off-roading with it. You may take it to the observe. You may have enjoyable with it, but when we’re being candid, it’s not the least costly choice on the market.”

The R2 may change all that. A $45,000 midsize SUV will naturally convey extra individuals into the world of Rivian possession. Not everybody will be a part of the membership or hunt down camaraderie with different Rivian house owners, and that’s okay, Vreeland says. Rivian house owners used to wave once they would see different Rivians on the highway. She’s not anticipating that custom will final within the firm’s new period. “Regular automotive consumers,” she calls them.

Whether or not these regular automotive consumers will truly think about the R2, a lot in the best way they did the Tesla Mannequin Y, might be carefully watched by members of the Rivian Golf equipment of America — in addition to buyers, {industry} stakeholders, and everybody with a need to see whether or not this nation can nonetheless compete with China. The federal EV tax credit score is gone, however the rise in gasoline costs is main some individuals to present EVs one other look.

Vreeland is aware of Rivian isn’t out of the woods but. She reads the information, hears the tales about EV cancellations and monetary headwinds, and hopes for the very best. The message boards are cut up over numerous predictions for the long run: Perhaps some mixture of R2 success plus funding from Volkswagen and now Uber might be sufficient to place the corporate on the trail to a brighter future. She’s not satisfied that autonomy and AI would be the saving grace — it simply must be a terrific automotive.

“You learn these dire headlines, just like the EV {industry} is dying, no matter, that may make you’re feeling pessimistic,” Vreeland says. “However then while you get into the automotive and also you perceive it higher and also you perceive, ‘Wow, that is an American firm, like how did they do that?’”

When Rivian was created over a decade and a half in the past, it seemed nearly nothing prefer it does at present. Actually, it didn’t even intend to make electrical automobiles. Scaringe based Mainstream Motors in 2009, naming the corporate after his father’s engineering agency based mostly in his hometown of Rockledge, Florida, a bed room neighborhood for NASA employees. The elder Scaringe began his personal firm in his 30s. His son, recent out of MIT with a PhD in mechanical engineering, based his at 26. He was the only worker.

Mainstream Motors, which quickly grew to become Avera Motors, was unwittingly following the Tesla playbook by setting its sights on a quick, four-seat coupe with rear-wheel drive and excessive gasoline effectivity. If they may discover success with a fun-to-drive sports activities automotive, maybe mainstream automotive success would comply with. With cash from family and friends, in addition to $2 million seed funding from the Florida Vitality and Local weather Fee, Scaringe employed about 15 designers and engineers from a raft of different automotive corporations, together with Mitsubishi, Chrysler, and Mercedes-Benz, and set to work on their first prototype to point out to potential buyers, in keeping with a 2010 interview with Scaringe in Hagerty. The corporate was so cash-strapped that the weekly snack price range was solely $35, and workers regularly housed interns to economize, in keeping with a 2021 article in Bloomberg.

In late 2010, the crew unveiled their first prototype, a hatchback dubbed “the Blue Factor.” To save lots of prices and supply a proof of idea for buyers, the automobile was primarily a rebodied Mini Cooper that used the Mini’s engine and drivetrain. A photograph marking the event exhibits Scaringe and his crew proudly posing behind the unfinished-looking Blue Factor with wrapping tape nonetheless masking the entrance bumper.

“It was like the rest,” Scaringe mentioned on a 2010 podcast about his firm’s origins. “The one strategy to begin was to begin. A lot of U-turns, numerous twists, numerous turns, numerous intestine punches. General, simply brute drive constructed it.”

Scaringe was in a position to safe important early funding via a artistic lease-back settlement with House Florida, the state’s aerospace financial growth company. In accordance with TechCrunch, House Florida invested almost $2 million, partially as a result of it was within the automobile for the Moon or Mars. The company purchased the Blue Factor for $500,000, and leased it again to Avera for simply $100 a 12 months. It later purchased three further prototypes for $1 million beneath an analogous settlement. (The story doesn’t finish effectively for House Florida. The company thought it had a 3 p.c stake within the firm that might develop into Rivian, which may have translated to a $3 billion windfall after the corporate’s 2021 IPO. However due to an unexplained recapitalization, it solely netted about $7 million.)

Ultimately, Avera modified its identify after Hyundai threatened to sue, claiming the identify was too just like its Azera sedan. The brand new identify, Rivian, was a play on the Indian River lagoon close to Scaringe’s hometown.

Throughout this time, the product targets stored shifting between an inexpensive sports activities automotive, an costly supercar, and a spartan race automotive to woo numerous buyers. They even thought of a dune buggy after a brush with insolvency necessitated bringing in funding from Saudi Arabia. It was there that Scaringe was challenged to design a rugged however environment friendly pickup for the desert, a mashup between an F-150 and a Toyota Prius, in keeping with the Bloomberg article.

The desert automobile side fell by the wayside, however the truck half caught. Scaringe knew that to succeed, it wanted to be totally different from all the large, bloated pickups popping out of Detroit. In accordance with Bloomberg, he made a unilateral determination throughout a board assembly: The truck can be electrical. Tesla was about to launch the Mannequin 3 to a lot fanfare. Vehicles have been a number of the best-selling automobiles in America, but nobody was fascinated with methods to make an electrical one. The outdated compliance vehicles from the Nineteen Nineties have been fading from reminiscence. Tesla, and electrification, appeared like the long run.

A man with glasses stands on stage with two Rivian vehicles facing him.

Rivian first revealed the R1T in 2018; the R1S SUV got here out a day later. Deliveries have been delayed a number of occasions, with prospects having to attend till 2021 and 2022, respectively, to obtain their automobiles. However finally Rivian labored out the kinks; since manufacturing started in September 2021, the corporate has delivered over 175,000 automobiles — a decent quantity for a brand-new startup. Tesla didn’t promote its 200,000th automotive till 2018, about 10 years after promoting its first.

However the actual coup was securing a large contract with Amazon for 100,000 electrical supply vans, resulting in its blockbuster IPO in 2021, briefly valuing the corporate greater than Ford. The retail large invested a complete of $1.4 billion in Rivian, changing into a significant shareholder within the course of.

This may develop into a working theme for Rivian: hitching its wagon to a lot bigger, better-financed corporations to make sure long-term viability and survival. Earlier than the Amazon deal went via, Rivian was in talks to construct EVs for GM after which Ford, although neither deal would pan out. (In muscling out GM, Ford invested $500 million within the firm in 2019, solely to promote its majority stake in a $7.3 billion write-down three years later.)

The Amazon deal would finally get eclipsed by the 2024 partnership with Volkswagen, which provided $5.8 billion to kind a software program three way partnership — a life preserver for Rivian throughout a precarious second. The corporate closed that 12 months with over $4 billion in losses.

A line of parked dark blue Rivian Amazon branded delivery vans.

Rivian is now closely tied to Volkswagen, which is coping with its personal issues round plunging earnings, declining market share, and software program reliability points. Rivian may assist repair the lattermost of these issues, designing software program for manufacturers throughout the German auto large’s portfolio. The deal was too good to cross up. VW now owns a virtually 16 p.c stake in Rivian, surpassing Amazon as the biggest shareholder.

In some methods, it’s a hedge towards a extra unsure and unpredictable future. Of their public feedback in regards to the partnership, VW executives have appeared to suggest that Rivian may in the future develop into a subsidiary beneath the German auto large’s international model. The corporate didn’t begin as an electrical automobile maker, and there’s a risk it might not survive as one both.

“There’s lots of transferring items that they should juggle,” mentioned Sam Abuelsamid, an automotive tech analyst at Telemetry. “In the event that they drop any of them, in the event that they drop any of these balls that they’re juggling, that could possibly be an existential disaster for them.”

Essentially the most distinguished ball is the R2. If Rivian drops it, and the R2 is only a modest hit, will Vreeland and the remainder of these followers stick round?

Scaringe, a longtime vegan, is simply ending up a veggie breakfast earlier than preparing for an all-hands assembly on the Regular manufacturing facility. The continued post-tornado cleanup might be a significant subject, as will the influence on the R2 ramp. His message might be clear.

“We’re attempting to compete with the very best on this planet. We have now to have a really massive engineering price range [and] we’re spending an incredible sum of money to construct really world-class expertise,” Scaringe tells me. “When you qualify the identical with the twister hitting the plant at the beginning of manufacturing, it’s undoubtedly the quickest. I don’t suppose Tesla or anybody else needed to cope with that as effectively.”

A smiling man wearing jeans, a blue button down shirt, boots and glasses stands in front of a white Rivian R2 with its headlights on. The image is taken in a factory and has a blue cast.

The corporate desperately wants this automobile to be successful. Final 12 months was a tricky one for Rivian, with gross sales dropping 18 p.c 12 months over 12 months. Expectations of profitability are being pushed additional into the long run due to heavy R&D spending on autonomy. Nonetheless, Rivian initiatives it can promote upwards of 67,000 automobiles in 2026, anchored primarily by the R2. With R1 gross sales anticipated to stay flat, that might imply Rivian expects to promote as many as 25,000 R2s earlier than the tip of the 12 months. As TechCrunch famous, that might be one of many quickest launches of a brand new EV ever recorded.

“R2 is a very powerful factor we now have as a result of it’s what takes us from being subscale to being a scaled producer,” Scaringe tells me.

Ramping up manufacturing of a brand-new automobile, particularly one as very important because the R2, is rife with pitfalls. Ask Elon Musk. Tesla grew to become a large within the auto {industry} based mostly on the success of the Mannequin 3, an inexpensive EV that seamlessly blended cool tech with an inexpensive worth. However the automotive very almost drove Tesla out of enterprise. The corporate was bleeding money whereas being over-leveraged on robots and automation. In a determined bid to hit a 5,000-vehicle weekly milestone, Tesla arrange a large, makeshift meeting tent within the car parking zone to construct the Mannequin 3s by hand and ease bottleneck points inside the primary plant. Musk famously referred to the rollout as “manufacturing hell.”

Scaringe may hardly be confused with Musk — one’s an egghead from Florida, the opposite’s a pro-natalist white supremacist who not too long ago (and briefly) grew to become the world’s first trillionaire — however he is aware of that risks lurk round each nook. (Scaringe himself is estimated to be price $200 million, regardless of a current divorce that value him thousands and thousands of {dollars} and a few of his voting stake within the firm. That mentioned, Scaringe did succeed not too long ago in getting Rivian’s board to approve a Musk-like, performance-based pay bundle price over $4 billion. If the R2 is successful, Rivian lives on — and Scaringe turns into the world’s latest billionaire.)

Like Tesla, Rivian depends on some automation — throughout my tour, I watch as lots of of business robotic arms assemble the trays that may finally comprise the R2’s lithium-ion battery — however received’t be overreliant on it. For Scaringe, the actual menace lies additional downstream, lurking within the firm’s provide chain. That’s why he’s placing such an emphasis on making issues in-house, like writing its personal working system software program. Whereas many automakers depend on suppliers like Bosch for electrical motors, Rivian designs and manufactures its personal. It sources its battery cells from LG Vitality, however makes its personal packs, in addition to the cooling methods for quick charging. Quickly, it can design its personal AI chips for autonomous driving. It’s even contemplating making its personal lidar sensors. Something much less, Scaringe believes, would open the corporate as much as an unacceptable stage of danger.

“The provision chain surroundings has not been steady within the final 5 years. It’s simply very, very dynamic,” Scaringe says, citing tariffs, the warfare in Iran, and excessive gasoline costs. (Sure, even an EV firm can really feel the sting, as a result of downstream results of mining for battery minerals, for instance.) “The most important danger for ramp-up is the provision chain.”

A cluster of yellow machine arms working on unspecified silver car parts on the Rivian factory floor.

Vertical integration at this stage is enormously expensive. However Rivian isn’t like Fisker or any of those different EV startups which have already gone out of enterprise, Scaringe insists. He explains that the corporate is spending considerably on a world-class engineering crew, producing its personal silicon, motors, energy electronics, and computer systems. Sure, Rivian loses cash yearly, but it surely additionally creates a variable value benefit at scale. The R2 is the important automobile to unlock that scale, enabling the corporate to cowl these mounted prices. However the course of will begin slowly, Scaringe says. “We’re not urgent a button to have lots of of hundreds of vehicles produced the day we begin manufacturing.”

Nonetheless, it shortly turns into clear that what actually animates Scaringe isn’t discuss of provide chain woes or the anguishes of early manufacturing — it’s autonomy. A dialog about Rivian’s entry into self-driving vehicles is when he’s at his most Muskian, projecting that the corporate — which has by no means publicly demonstrated a completely autonomous automobile — will finally develop a Stage 4 system, which means no human supervision required inside sure limits.

“It’s our greatest focus; it’s the biggest space of funding,” Scaringe says. “It’s my greatest focus when it comes to my actions inside the enterprise — that is what I’m spending probably the most time on.”

This surprises me, nearly as a lot because it did after I was in Palo Alto final 12 months to observe Rivian announce its plans to design its personal AI chips. It appears counterintuitive, like a pivot from what the corporate had beforehand represented. Rivian is meant to be an outside lover’s different to Tesla: rugged and off-road-worthy, whereas nonetheless being totally electrical. Now it looks like it’s attempting to chase the mercurial billionaire down an AI rabbit gap.

Scaringe subscribes to Musk’s outlook that, finally, “every little thing might be autonomous … and that’s not 10 years away,” he says. “That’s within the subsequent couple of years. You’re going to begin to see ever-increasing ranges of autonomy.”

It’s not simply the vehicles which can be getting an AI makeover. Over 70 p.c of Rivian’s software program crew is utilizing Cursor, an AI coding agent owned by SpaceX, to code new software program options, mentioned James Philbin, senior VP for autonomy and AI on the firm. “I believe it undoubtedly modifications the job,” Philbin informed me final April. “However doubtlessly I believe will speed up lots of software program growth.”

I requested whether or not Philbin, who beforehand labored at Waymo and Zoox, felt like he was swimming towards the tide by creating an autonomous automobile at an adventure- and off-roading-themed EV firm. “I imply, I might flip the query again and I might say, ‘Why are these legacy OEMs swimming towards what’s clearly the tide of the long run?’” he mentioned. “In 10 years, the overwhelming majority of vehicles might be EVs and I believe the overwhelming majority of vehicles might be more and more autonomous.”

A person with short hair wears a gray shirt that reads “keep the world adventurous forever” on the back.

Whereas some might even see the transfer as savvy, others may construe it as determined. As EV demand stalls out, autonomous automobiles have been surging, fueled by the unbelievable progress of robotaxi startup Waymo over the past 12 months. The corporate now operates in 11 cities within the US. In the meantime, Uber’s sizzling on Waymo’s heels. Final March, the ridehail firm mentioned it might purchase 10,000 robotaxis from Rivian — particularly, autonomous R2 automobiles — as a part of a deal that would web Rivian $1.25 billion in new funding. Like VW, Uber has develop into one other well-capitalized benefactor throughout a pivotal second. And earlier than the R2 has even rolled out, Rivian has an order for 10,000 of them.

To put the groundwork, Rivian is providing extra AI-powered merchandise to its prospects. Final 12 months, the corporate rolled out its so-called Common Arms-Free driving characteristic, masking 3.1 million miles of highway within the US and Canada, for second-gen R1 automobiles. And later this 12 months, it expects to launch point-to-point hands-free driving, which incorporates navigating turns, intersections, and on/off-ramps. Consider it as Rivian’s model of Tesla’s controversial Full Self-Driving characteristic.

However early assessments have been blended. Edmunds referred to as it “boring” however spectacular. In his assessment of the R2, Verge contributor Lawrence Ulrich referred to as the Common Arms-Free system “overconfident to the purpose of obliviousness.” My very own expertise within the passenger seat of an R1S utilizing hands-free driving was marked by a number of disengagements and a few shut calls with cyclists. And now, Rivian is dealing with a lawsuit from R1 house owners over allegations of false claims about its autonomous driving capabilities.

However whereas Tesla’s method to full autonomy depends completely on cameras, Rivian plans on including lidar sensors to its R2 automobiles later in 2026 for further security. That was sufficient to get Uber via the door and right into a profitable deal. And Rivian may definitely use the money because it wades via the sticky terrain of early R2 manufacturing. Scaringe argues that Rivian can outpace Tesla, and even Waymo, given its capability to feed digicam information from its buyer fleet into its “Giant Driving Mannequin.”

“We’ll have much more information than Waymo,” he says. “Tesla, by far, has probably the most information however probably the most constrained sensor units … Waymo has probably the most sensors however a really small fleet. We have now one thing within the center.”

After all, the cash received’t come except Rivian hits a sequence of essential milestones, Uber CEO Dara Khosrowshahi mentioned on the Decoder podcast not too long ago, together with testing and not using a security driver behind the wheel. “They’ve acquired to ship,” Khosrowshahi mentioned, “and based mostly on every little thing that we’ve seen from RJ and crew, placing collectively a first-class AI crew, we’re assured that they will ship on these R2s.”

Scaringe appears equally assured in Rivian’s success. After all, he needs to be. All through our interview, he initiatives confidence. Rivian received’t be acquired by VW, however the partnership permits for value sharing of elements and content material between manufacturers — a lot in the best way a subsidiary would.

It isn’t till later, once we’re strolling the manufacturing facility ground collectively, that the masks slips somewhat.

“The R2 is how all that [vertical integration] involves a realization,” he says. “It’s why R2 for us — if R2 just isn’t profitable, then we’ll have to resize how we’ve arrange the enterprise.”

Which is to say: If the R2 doesn’t work, Rivian received’t appear to be Rivian for much longer.

When the R2 comes out, it received’t be accessible on this planet’s largest marketplace for electrical automobiles: China.

In contrast to most American automotive corporations, Rivian solely sells its vehicles in North America. Tesla’s determination to open a manufacturing facility in Shanghai is broadly seen as a pivotal second within the firm’s historical past and a key waypoint on the highway to its present $1.24 trillion market cap.

Hundreds of cars neatly arranged can be seen in an enormous parking lot from above.

However China’s home manufacturers, not Tesla, are those which can be at the moment devouring the world. Backed by heavy state help and big home overcapacity, China at the moment manufactures roughly 75 p.c of all EVs worldwide. A lot of them promote for lower than $20,000 — half the value of any comparable automobile within the States. Tariffs and different protectionist insurance policies have stored China from promoting its vehicles to US prospects, although specialists surprise how lengthy that may maintain. Ford CEO Jim Farley has warned that permitting China to promote its vehicles within the States can be a loss of life blow for Detroit.

Rivian has imported its personal fleet of Chinese language vehicles for benchmarking functions. It assessments them on a non-public course, after which tears them to shreds to look at each bolt and pc chip. Xiaomi’s SU7, specifically, has impressed Scaringe, with its clean-sheet method to software program and superior high quality execution. However the Rivian CEO doesn’t ascribe the identical industry-killing skills to China as a few of his automotive counterparts.

“We’ve taken the vehicles aside … there’s no magic,” he says. “They’re utilizing stampings, they’re utilizing castings.”

The nation’s precise aggressive benefit, in keeping with Scaringe, is that labor is a lot cheaper over there. Even when the vehicles are constructed right here within the US, that benefit vanishes, and China has to compete on a extra stage taking part in discipline.

Nonetheless, Washington appears to have taken Detroit’s apocalyptic warnings to coronary heart, throwing up seemingly insurmountable commerce boundaries to stop China from exporting its vehicles to the US. Tariffs make it prohibitively costly for any Chinese language automotive to be bought right here. And vehicles with any related automobile software program that originates from China are barred from sale beneath a Biden-era regulation.

However many vehicle specialists suppose it’s inevitable that Chinese language vehicles will finally discover their strategy to US dealerships. The US may require Chinese language OEMs to create a three way partnership with a home model, a lot in the identical means that China does for overseas automakers that need to promote to its residents. Even President Trump has expressed willingness to permit China to promote within the US, so long as the vehicles are manufactured right here.

In the event that they do, Scaringe is assured Rivian received’t get snowed beneath. “If the Chinese language corporations resolve to supply domestically in america, these benefits disappear,” he argues. “The price of labor for a Chinese language firm working in america and the price of labor for a US firm working in america goes to be the identical.”

However anticipating a stage taking part in discipline at the moment appears a bit foolhardy, if not outright unrealistic. Detroit is attempting to insulate itself from a Chinese language onslaught by going again to the drafting board on EVs. Can Rivian engineer its personal resolution?

The relationship between small cities and the big-name employers who are available promising numerous jobs and funding is at all times a bit fraught. There’s considerations about placing all of your eggs in a single basket when relying closely on a single employer, particularly one deeply rooted in a risky market surroundings. Regular definitely is aware of this higher than most, having endured the “modified fortune” headlines after Rivian’s buy of the previous Mitsubishi plant in 2017.

However these fortunes may reverse if the EV market fails to climb out of its present stoop. Like most automakers, Rivian has gone via a number of rounds of layoffs in its brief historical past, most not too long ago in June, with cuts from its gross sales and advertising and marketing divisions. The corporate’s salaried manufacturing facility employees have been excluded; subsequent time, they won’t be so fortunate.

A drone shot of the entrance of the Rivian factory. There’s a manicured grassy area with two vehicles displayed along the road leading to the entrance of the enormous Rivian building. It’s a bright sunny day with a blue sky overhead.

“It’s been type of a tradition change for the Bloomington-Regular neighborhood,” mentioned Adam Campbell, dean of profession and technical schooling at Heartland Group Faculty, the place Rivian runs an apprenticeship program.

Campbell mentioned that other than its huge cornfields, Regular has at all times had a large white collar neighborhood, with State Farm’s worldwide headquarters and two universities. “With Rivian coming in as a significant producer inside the state, that’s type of shifting the tradition somewhat bit for the higher. So now we’re transferring extra into superior manufacturing.”

However even Heartland realizes that the winds are altering. The long run, a minimum of the American future, received’t essentially be “EV solely,” as some had beforehand predicted. Hybrid automobiles are actually the brand new progress product of the {industry}, which has spurred the faculty so as to add a brand new hybrid diesel tools expertise program to its curriculum.

“We’re not caught within the outdated means of doing issues,” Campbell mentioned. “We do attempt to be progressive.”

It will not be sufficient. Rivian has already skilled important turnover in its brief historical past, shedding hundreds of workers. Campbell is aware of he must construction his curriculum to reply to a quickly altering financial surroundings.

“Hypothetically, if the electrical automobile {industry} ebbs and there’s a pause in that, the scholars that come via our programming, what they study remains to be 100% viable,” he says. “It will possibly work throughout a number of industries.”

It looks like all over the place you go in Regular, there’s some reminder of Rivian’s outsize position in the neighborhood. The Parkview Inn, a restaurant in Bloomington recognized for its broasted rooster, slot machines, and decor that leans closely on license plates as artwork, is a typical hang-out for Rivian employees, present and former. Joe (who declined to present his final identify) labored on the manufacturing facility for a 12 months and a half earlier than deciding that spending hours indoors daily on the meeting line was not the very best use of his time. He now works in landscaping and is far happier.

Joe, who remains to be sporting his “Hold Regular Adventurous Endlessly” T-shirt, says he retains in contact together with his associates on the plant, who report that the tempo has picked up significantly for the R2 manufacturing. “All my associates say it’s, like, a minimum of 10s if not 12s proper now,” he says, referring to 10-hour and 12-hour shifts. Some employees are on 4 12-hour shifts every week on a three-week rotating schedule.

He has lots of opinions about Rivian, like in regards to the managers (“Everyone’s chill”), the high-end e-bike the corporate says it’s making (“In my view, they have been late to the sport once they dropped it”), the expert employees that Rivian introduced in from in a foreign country (“They purchased homes for individuals to come back right here”), and the rumors of a secret hydrogen venture Rivian is allegedly engaged on (“I don’t know in the event that they’ll ever discuss that once more”). However in the end, he needs Rivian effectively and is actively cheering for the R2 to be successful.

“I hope so,” Joe says. “Only for the sake of my city.”

People lined up on either side of a white Rivian driving down a narrow path in a factory. The driver gives a high five to a person taking pictures outside of the vehicle.

Joe could not comprehend it but, however Regular isn’t the one city counting on Rivian’s future success. The brand new Regular is a city referred to as Stanton Springs North, about 45 miles east of Atlanta, Georgia, the place Rivian not too long ago broke floor on a brand new $5 billion manufacturing facility to construct lots of of hundreds of R2s. Whereas the Regular plant is a retrofitted facility with a capability of solely 200,000 automobiles a 12 months, the upcoming Stanton Springs campus is designed to be the platonic very best of a Rivian manufacturing facility, constructed from the bottom as much as manufacture as much as 300,000 EVs yearly.

It represents Rivian’s dream for its future. However the firm not too long ago was pressured to cut back the plan after Trump’s Vitality Division slashed a mortgage settlement with the corporate from $6.5 billion to $4.4 billion. It’s nonetheless getting a giant mortgage, however even its desires are getting downsized. Its personal authorities seems to be actively working towards it, first by eliminating pro-EV insurance policies, and now by renegotiating a settled mortgage deal.

The parable Individuals inform themselves about their nation is that it’s a spot that breeds innovation and nurtures the entrepreneurial spirit. A well-regarded firm that makes attention-grabbing, thoughtfully designed merchandise which can be additionally environmentally pleasant, one which employs hundreds of individuals, with the potential to make use of hundreds extra — you’d suppose an organization like this could be on a glide path to success. And but Rivian is struggling to safe its future within the face of a risky market, a hostile authorities, and fatigued shoppers. If Rivian stumbles, or worse, fails, that fable of American innovation could endure an irreparable blow.

The R2 had its official launch June ninth. The evaluations have been broadly constructive, and followers are already crowding into the Rivian subreddits and different boards to yap about specs and take a look at drives. Will the non-fans, the lots of of hundreds of normal those that Rivian desperately must dig its means out of this rut, present up too? The corporate is using excessive on the positivity of loyal prospects like Romy Vreeland and her membership cohorts — whilst its inventory by no means appears to rise above $20 a share. Clouds loom on the horizon: Days after the R2 deliveries began, Rivian introduced it was shedding lots of of workers.

The market headwinds are blowing, gusty and gale-sized, however not but spinning quick sufficient to categorise as a twister. Rivian can solely batten down the hatches, and face the storm.

Correction, Wednesday July 1: An earlier model of this text acknowledged that Rivian was designing software program for Volkswagen’s inside combustion engine automobiles. It’s only for electrical automobiles.

Replace, Monday July sixth: An earlier model of this story mentioned that Rivian’s manufacturing facility in Georgia can have capability for 400,000. After renegotiating the mortgage with the Division of Vitality, the capability will now be 300,000 automobiles.

Leave a Comment Cancel Reply