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The U.S. electric vehicle maker’s make-or-break model, the R2, is finally here — and it’s pretty fun to drive.

The attainable Rivian is here, and not a moment too soon.
It’s been nearly a decade since the U.S.-based startup revealed its prestige R1T pickup truck and R1S SUV, earning plenty of “the next Tesla” hype and becoming lots of people’s favorite electric car brand. But with those R1 vehicles starting around $70,000 — and with nicer versions hitting six digits — lots of would-be drivers have been waiting for R2, the scaled-down vehicle first announced in 2024 and meant to take Rivian to the masses.
Now the moment has arrived: On Tuesday, Rivian began shipping the first version of the R2. I had the privilege of test-driving the vehicle that will make or break the brand last week on the highways and mountain roads outside Park City, Utah. If my experience is any indication, R2 is up to the job of making Rivian mainstream.
“A word we used really heavily throughout the development of R1 was … inviting,” CEO and founder RJ Scaringe said to the journalists at last week’s event. “We use that in the sense of inviting people to use it, inviting people to get it dirty, inviting people to have new experiences and new adventures in it. But by virtue of it being a flagship product, its price wasn't as inviting as we wanted. And so R2 really in many ways is the culmination of the full brand promise.”
First, the facts: R2 looks at first glance like a smooshed version of Rivian’s big SUV, with the same signature headlights and basic shape. It’s a little shorter, a little narrower, and 2,000 pounds lighter than its big cousin, seating five people as opposed to the seven that can cram into R1S. Range from the 88-kilowatt-hour battery is in the high 200 miles and tops 330 miles for some editions.
The stat that matters most is price. The first R2s out of the gate will cost around $58,000, and gradually less expensive tiers will arrive later this year and into next, culminating in the $45,000 base version at a yet-to-be-determined date. No, an EV around 50-grand doesn’t sound like a car for the common man. But as Scaringe noted, that is now the average price for a new car in America, which certainly makes R2 attainable for millions more drivers.
It’s also a lot of car for that money. Thanks to its boxiness, R2 feels like it has loads of room on the inside. Because of an improved battery shape, there’s actually more legroom for the rear passengers compared to R1. Double gloveboxes and a pretty big frunk add to the available storage space. (Rivian even fixed a pet peeve of R1 owners who couldn’t fit their monstrous water bottles in a convenient spot.)
Yet R2 doesn’t drive big. It rides high and offers the driver a wide view, but it’s not a tank like R1, which I found difficult to park in compact spaces like the one at my home. Its 5,000-pound weight is still a lot of heft (a Tesla Model Y is more like 4,000 to 4,400 pounds), but the car still feels zippy. The mass is simply overwhelmed by electric power, especially in the higher-end versions Rivian let us drive in Utah.
As the engineers on site noted, developing the R2 was mostly an exercise in subtraction — not just shrinking the physical size from the R1, but also making R2 cheaper to build by removing miles of wiring (something the brand visualized at the event by showing off bundles of copper in the style of a rubber band ball, representing all that had been cleaved). But R2 needed its own bells and whistles so it would feel desirable on its own and not appear to be merely a discount Rivian.
Those additions include rear windows that go all the way down, unlike the halfway that’s common in most passenger cars; the rear windshield descends, too. A fun button up front marked with a “5” will lower all four passenger windows plus the back windshield at once. In response to complaints about every function running through the center touchscreen, Rivian put in some buttons — or, rather, some wheels. On each side of the steering wheel, reachable by a person’s thumbs, are haptic “halo” buttons that can be pushed side to side or spun. These are not at all the subtle, slight wheels you’d find a Tesla, but rather beefy spinners meant to feel rugged and easy to manipulate.
During testing, I struggled with how hard to push them and in what direction to enter the desired mode that could then be adjusted by spinning the wheel, be it climate, music, drive mode, or the positioning of the side mirrors. But something tells me Rivian will refine the haptic feedback as R2 owners put miles on their vehicles. And even complicated or layered menus become second nature once it’s your own car.
Many of these vehicles will never go off-road, but Rivian still had to prove the R2’s backcountry bona fides. This is the adventure EV brand, after all, and part of the pitch for R2 is how much more it can do than a Tesla Model Y or Chevy Equinox EV. Keen to prove the point, Rivian swapped us halfway through the test drive into R2s with their tire pressure halved to make them mountain-ready, then directed us onto the rutty, boulder-pitted roads of Wasatch Mountain State Park to wade through water crossings and up to the top of a plateau. Here the touchscreen becomes an adventurer’s dream, displaying the vehicle’s moment-by-moment elevation, pitch, compass direction, and much more. Tap into the camera system and it can bring up the close-up view of what’s right in front of the vehicle and shows both front wheels to help navigate around pointy rocks and cavernous ruts.
R2 never wavered or felt as if it had taken on too much. It has all the capability you’d need as a trail warrior, and more than enough for the affluent professional who yearns to become outdoorsy. After so many decades when the world’s truly rugged vehicles were also low-mile-per-gallon polluters, it feels like a breakthrough just getting this much can-do spirit out of an electric car.
More salient for the urban dweller is Rivian’s big push into autonomous driving. As we noted in December after the brand’s AI and Autonomy Day, R2 is the company’s big play in that race: It vastly ups the amount of road open to Rivian’s hand-free autonomous driving feature works, raising it to about 3.5 million miles in the U.S. The company also told us that by the end of the year it would introduce point-to-point service, where the vehicle really can drive itself for the duration of a trip, with more autonomous features potentially on the way. During the test drive, the hands-free tech felt steady and assured on twisty local roads.
Rivian has a long way to go here, given Tesla’s major head start in developing vehicle autonomy. One big asset it does have is the thousands of drivers who’ve bought R1s and who opted to share their driving data with the company, helping it build a dataset that maps and models the world. The less expensive R2 should get many more people into a Rivian vehicle and accelerate that learning curve. That, plus the eventual addition of a LIDAR sensor to some models, will allow that kind of full autonomy that R2 will use when it goes into service as an Uber robotaxi following the ride-sharing company’s $1.2 billion investment earlier this year.
It’s difficult to overstate the importance of this vehicle for Rivian, or for the electrification of the American car. For the brand, this must be its Model 3 moment, where it leaps from a niche brand selling luxe status symbols to one that builds a huge number of EVs — and in the process hopefully becomes financially stable after years in the startup “valley of death,” between promise and profitability. Billion-dollar investments from the likes of Volkswagen and Amazon buoyed Rivian during those years; now R2 has to deliver on them.
As for the U.S. EV market as a whole? It also needs the R2. New EV sales are sagging in America, even amid gasoline price shocks caused by the Iran War. A $50,000 Rivian isn’t exactly the solution to the auto industry’s affordability crisis, but Scaringe argued that U.S. buyers also lack great choices. The industry leaders — Tesla’s Model 3 and Model Y — have been on the market since 2018 and 2020, respectively, with subtle tweaks and update since then. New offerings from legacy carmakers like Chevy and Toyota are a welcome change. Still, they feel like a Chevy or Toyota that’s been electrified, not like a vehicle built from the ground up to deliver on the promise of what a great EV can be.
Yet even now, the learnings from the EV startup world that led to R2 — dramatically simplified manufacturing to bring down costs, advanced touchscreen infotainment with elegant interfaces, EVs built fully integrated from the ground up rather than adapted from existing gas cars — are already influencing the rest of the industry. Just look at what Ford’s skunkworks operation is up to as the Detroit giant tries to catch up in the EV race starting next year. A successful R2 would push the car industry further in this direction.
R2 succeeds in bringing the feeling of a lusted-after EV to the five-seat, fully capable SUV, which has become the de facto family car of this country. And for all of Rivian’s focus on catching up in the AI and autonomy race, R2 still feels like a car you’re supposed to love to drive yourself, whether that’s to work, to grandma’s, or to the top of a mountain. It is, indeed, inviting. With Tesla having publicly abdicated its role of building great EVs for humans to drive, Rivian is now primed to seize the position.
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A longtime energy analyst argues that there are no solutions to the hyperscale problem, only tradeoffs.
Sam Altman, Dario Amodei, and Elon Musk need sign-off from fewer than a dozen board members to commit their companies to multibillion-dollar moves. The power plants that supply their data centers need sign-off from 13 states (plus D.C.), thousands of generators, millions of customers, and a federal regulator whose ratemaking standard predates the personal computer in order to build anything new.
Everyone in tech knows about the CEOs of the foundational artificial intelligence labs. Only energy nerds know the names of the people running our grid operators. That anonymity is a feature, not a bug. Grid operators generally think in decades, not years. But right now, they’re telling the U.S. that it has years, not decades, to figure out its own new path forward.
For decades, this process sufficed for energy generators (and regulators) grown accustomed to gradual, predictable load growth. But over the past several years, the scale and speed of increasing energy demand has overwhelmed the supply -side’s ability to respond. The resulting strain on the grid has reverberated through every rung of the supply chain, delaying development timelines, increasing costs, and elevating energy from political conversations to dinner table discussions.
The loudest creaks and groans are coming from PJM Interconnection, North America’s largest grid operator. Residential bills in the PJM service area are climbing at a dizzying pace. Recent capacity auctions have ended with record prices, which PJM’s own market monitor blames on the explosive growth in data center power demand. Pennsylvania Governor Josh Shapiro has attempted to pressure PJM to lower its capacity price cap. Even Secretary of Energy Chris Wright has called on the Federal Energy Regulatory Commission to develop new procedures to help get data centers online faster.
David Mills, PJM’s CEO, published a 70-page report in May acknowledging that current market rules cannot keep pace with AI-driven load growth. And yet he also refused to recommend a path forward, leaving the decision to “state regulators and legislatures, to FERC, to consumers.”
The most essential grid infrastructure, he explained, “is not a price curve or a performance obligation — it is legitimacy.” In other words, what’s broken isn’t a parameter inside the capacity market, but rather the capacity market itself, along with the political conditions under which it operates. PJM calls this the “credibility trap”: high prices accurately signal that new investment is needed, but when those prices become politically untenable, government intervenes and investment stalls.
The fix, Mills writes, “requires structural choices, not just parameter adjustments.”
Mills is speaking to a deeper issue with the grid than its ability to respond to shifting market dynamics, which is that hyperscalers and grid operators are built to solve two different kinds of problems. Hyperscalers solve engineering problems with specifiable objectives, known constraints, verifiable outcomes. Engineering problems reward concentrated authority and unilateral decision-making.
Grid operators, on the other hand, solve coordination problems. The information they rely on to do so is dispersed across millions of stakeholders, continuously revised and often contradictory, and operators’ preferences are not so much known as they are revealed through deliberation. FERC’s standard for wholesale rates is not whether those rates are objectively “correct,” but rather whether the market settled on those rates through fair competition. The process does not just determine the answer, it essentially is the answer.
This construction is the category error driving the current AI-grid collision. The electricity grid is not an engineering problem with coordination problems attached. It is a coordination problem with engineering problems embedded in it. Treat it as the former and you lose all the information that gets generated in the process of market-based price discovery. You also lose all the buy-in that occurs when real people are faced with real trade-offs and have to make hard, binding choices.
Mills did lay out three possible structural paths in his May letter:
These pathways are not equivalent — unlike with an engineering problem, there are no cut-and-dried solutions here. There are only trade-offs and questions about who bears their consequences. Path C is likely the better answer, while Path A is more expedient. The gap between them is the work PJM’s constituents have to manage over the coming years. PJM may choose the wrong path, or arrive at the right one too late.
The alternative is not hypothetical. If hyperscalers aren’t willing to wait for PJM customers to decide which path they want to take (and recent history suggests they are not) they will build behind-the-meter generation, sign bespoke deals with regulated utilities, and restart dormant nuclear plants. America would be left with two grids, one for compute, one for everything else. The first will be reliable and expensive. The second will be cheaper, fragile, and stranded with the costs of the system the first walked away from. The market would lose the dispatch signal, the error-correcting price mechanism, and the legitimacy of the system that has reliably powered the Mid-Atlantic for two decades.
Economist Friedrich Hayek described the limits of humans’ planning capabilities better than anyone in his 1974 Nobel Prize lecture, using the metaphor of the craftsman shaping his handiwork versus the gardener cultivating growth. The craftsman thinks they can make a perfect tool but repeatedly runs up against the boundaries of their own knowledge, whereas the gardener learns to manage new information as it arises, tending not to the product itself but rather to the conditions that produce it.
Hyperscalers are not bad actors. They have legitimate interests and the political capital to help shape the grid’s future. But we should resist the Newtonian urge to meet unexpected, swiftly moving demand with equally swift supply. Markets and physical systems both tend toward equilibrium, but the former finds it through deliberation, not collision. Instead of trying to unilaterally craft a better grid, hyperscalers might find a better path if they work with the practitioners who already know how to garden.
On Greenland’s rare earths, Baker Hughes’ geothermal bet, China’s green H2
Current conditions: A sprawling heat dome stretching from the Midwest to the East Coast is raising temperatures for more than 200 million Americans upward of 100 degrees Fahrenheit this week • Three firefighters died battling wildfires along the Colorado-Utah border on Saturday, while winds fanned the flames of the Cottonwood Fire in southwest Utah into the largest blaze in the U.S. right now • Back-to-back tropical storms Mekkhala and Higos battered Japan’s coast over the weekend, leaving at least one dead in a landslide.
For much of the past decade, Japan looked primed for offshore wind development for the same reasons the American industry first took root in the Northeast: It’s coastal, densely populated, and — with its nuclear power stations either shut down or idled — it’s more reliant on fossil fuels that it doesn’t locally produce than ever before. But building turbines off Japan’s shores has proven tricky as project costs ballooned. On Friday, Norway’s Equinor announced its decision to close its offshore wind division in Japan, after failing to win any leases at repeated auctions over the past eight years. “This decision reflects a reassessment of Equinor’s strategic direction, with a strengthened focus on integrated power markets,” the company said in a statement on its Japanese website.
The move comes two years after Denmark’s Orsted exited Japan. Last August, a consortium led by the industrial giant Mitsubishi pulled out of Japan’s first three offshore wind projects citing what Reuters described as concerns of surging costs. Last October, as I told you at the time, the newly elected government of Prime Minister Sanae Takaichi postponed a key procedural step for setting government funding levels for offshore wind projects. Instead, as you may recall, Takaichi has put a heavy focus on restarting the nuclear reactors mothballed after the 2011 Fukushima disaster and even expanding the fleet.

For much of the 20th century, the geopolitical relevance of the world’s largest island stemmed from its central location as a kind of poker table situated right where Washington, Brussels, and Moscow meet. More recently, it’s been about Greenland’s untapped mineral riches. As polar ice recedes, the autonomous Danish territory has opened previously inaccessible deposits of rare earths and copper to prospecting. For Greenland, whose population of fewer than 60,000 is roughly 85% Indigenous, mining has offered an opportunity to diversify its economy beyond just fishing, augmenting an expanding tourism sector with some heavy industry. In 2017, when I visited local political officials in Nuuk, the capital, sustainability-minded liberals pined for an alternative development approach that took advantage of Greenland’s unique and pristine wilderness to, for example, build out a biomedical industry that draws upon research into the survival traits that allow life to thrive in harsh polar environments. At the time, the populists pitching industrialism as a fast track to independence seemed, to me at least, destined to win the argument. But the green techno-optimists may yet get the chance to prove their approach.
Last week, regulators in Nuuk formally rejected an Australian mining company’s bid to renew its exploration license for one of the most advanced rare earths projects in Greenland. The Western Australia-based Energy Transition Minerals had been locked in litigation with the Greenlandic government over whether its project could safely extract rare earths such as neodymium, praseodymium, and terbium for magnets and batteries without producing uranium as a byproduct. A previous government in Greenland had banned uranium mining in 2021, effectively halting ETM’s Kvanefjeld project. But the company had told investors in February that it “remains confident in the merits” of its position in negotiations with Greenland and “resolute in our intention to develop Kvanefjeld responsibly and in accordance with international best practice.” Just last week, the company published data showing that it had identified 10 new rare earth deposits “with uranium levels recorded below regulatory thresholds.” If it factored into negotiations at all, it wasn’t enough to change the outcome. Following the rejection on Friday, the company told Reuters: “Greenland has positioned itself as open for business. This decision creates a different impression.” In a sign of how the political winds may be shifting, the headline on Sunday’s front-page story in Sermitsiaq, one of Greenland’s only national newspapers, warned of the “environmental bombs” coming just from future American military bases on the island.
Of all the ways to build up, shore up, and clean up America’s grid, geothermal energy is easily among the most elegant, narratively speaking. We already quietly operate the world’s largest geothermal power plant. The new generation of companies racing to build new power stations require the very same battle-hardened drilling equipment, technologies, and workers that sustained the fracking boom and turned the U.S. into a top global producer of oil and gas. Many of the best-mapped hot rocks are located out west, where the federal government owns vast tracts of land, meaning the strong bipartisan consensus in support of geothermal energy development can, in fact, translate into faster approvals for projects. It’s a bet that one of the nation’s largest oilfield services providers is now making. Last week, Baker Hughes inked a deal with the geothermal developer Mantle Reach Power to support construction of as much as 500 megawatts of new generating capacity. As part of the deal, Baker Hughes will provide its drilling technologies, in a move the company said would “de-risk and deliver” on the promises of geothermal power. “Geothermal is a clean power solution that is proving to be a vital contributor to advancing sustainable energy development, with incredible potential to enhance U.S. energy security, support digital infrastructure, and ensure energy remains accessible and affordable,” Baker Hughes CEO Lorenzo Simonelli said in a statement.
Meanwhile, federal regulators just approved the environmental review of a new conventional geothermal project. Once complete, Ormat Technologies’ Pearl geothermal project in Nevada’s Esmeralda County will generate up to 60 megawatts of power. It’s just the latest approval of what Think Geo Energy called a series of approvals for Ormat’s proposed expansion in Nevada.
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Even before the Iran War, momentum was gathering in China for a green hydrogen buildout. The “most important low-carbon policy for 2025,” according to the analyst Jian Wu, was China’s decision to start subsidizing green hydrogen-related applications from central government coffers for the first time as Beijing sought to wean off fossil fuel imports and make use of solar and wind farms that had grown so abundant that the country’s grid operators recently phased out key incentives for renewables. Since the war, Beijing has turned its attention to shoring up its domestic fuel supplies, whether by increasing its domestic drilling, chemically-processing coal, or zapping water with enough renewable electricity to cleanly separate out the hydrogen molecules. Now it’s placing a big bet on the latter. China just put out a new five-year plan for the energy sector with a goal to install more than 2 million metric tons of annual capacity to produce green hydrogen by the end of the decade, Hydrogen Insight reported. That would more than double the existing capacity.
Overall, the document raises the target for China to generate half its electricity from non-fossil sources by 2030. But its goals for the wind and solar sectors represent a significant slowdown from the recent pace of development, indicating the government’s interest in diversifying its carbon-free electricity sector.
At present, I see three guarantees in my life: Death, taxes, and the likelihood that another Chinese nuclear plant will make significant enough progress to merit telling you about it. Readers hoping to understand the stakes of America’s incipient nuclear renaissance are wise to keep track of how successfully China’s state-owned reactor developers have been building their own domestically-sourced version of the flagship U.S. reactor design. I can’t keep track of how many times we have covered Chinese reactor milestones. But add this to the list: Last week, World Nuclear News reported, the second of six Hualong One reactors at the Taipingling nuclear power plant in Guangdong province started up, sustaining a chain reaction for the first time. The speed with which China General Nuclear completed the domestically-supplied reactor — the design for which is largely cribbed from the Westinghouse AP1000 — highlights the strategy American atomic energy advocates are increasingly promoting. A nonprofit called the Nuclear Scaling Initiative launched in 2024 to propound the idea of focusing on reactors that can be built identically over and over.
Investors debate the right way to bet on the nuclear revival, and the growing list of startups debuting on the stock market through reverse merger deals that require less scrutiny than traditional initial public offerings provides ample grist for disagreement. But here’s a surefire wrong way: Selling $1.5 million of call option contracts for your employer’s stock on the day of a major announcement that you are playing a pivotal role in overseeing. Yet that’s exactly what the Department of Justice accuses Casey Muggleston, a former engineering manager in charge of relicensing the shuttered Three Mile Island power plant, of doing on the very day his employer, Constellation, announced a landmark deal with Microsoft to reopen the facility to supply its data centers with electricity. If convicted, Muggleston could face a maximum of 25 years in prison, according to ABC27, a TV news station in Harrisburg, Pennsylvania.
There is a heat wave in Europe, the world’s fastest warming continent. And so, as you may have heard, a perennial topic of online climate discourse has returned: Why don’t more Europeans have air conditioning?
I’m partially convinced this is psy op, or at least a figment of how social media organizes attention. I have a hypothesis that various “For You” page algorithms, especially that of the social network X, began to reward content that performed unusually well across national borders a few years ago. Since then, the amount of America vs. Europe content has surged. (Of course, writers have been comparing American and European lifestyles for much longer than that.)
Suffice it to say, though: It’s a fraught topic. I’ve assumed that as extreme heat gets worse as the climate changes, Europeans will simply get on with it and install AC, much as Americans in the Pacific Northwest have done. Yet there are cultural and regulatory obstacles to AC’s growth in Europe.
I’m sure I’ll write about it in the future, but for now I want to get a grip on the facts themselves. And so as a Friday special, I present to you — the facts about European AC, as I understand it:
Thanks so much for reading, and talk soon.