Rivian will begin delivering its more affordable R2 line of SUVs this spring with a variant priced at $57,990, according to multiple reports. The electric vehicle maker aims to widen its customer base and compete with Tesla's best-selling Model Y.
Key Takeaways
Rivian will begin delivering its more affordable R2 SUV line this spring, starting with a $57,990 Performance trim model and rolling out cheaper options by 2027. The R2 is crucial for Rivian as it aims to widen its customer base and compete with Tesla's Model Y.
- Rivian to start delivering R2 SUVs in spring with a $57,990 launch variant
- Cheaper R2 models, including a $45,000 variant, expected by late 2027
- R2 seen as critical for Rivian's expansion and profitability
- Analysts caution U.S. policy changes may hurt sales
The launch variant is a 656 horsepower dual-motor all-wheel-drive Performance trim that offers about 330 miles of range. Rivian also unveiled a Premium trim of the R2 at $53,990, to be available late this year, and a rear-wheel-drive Standard at $48,490 with deliveries starting in the first half of 2027. A keenly awaited $45,000 variant with over 275 miles of range is expected to significantly broaden Rivian's customer base and will also be available by late 2027.
The R2 is seen as critical for Rivian, known for its high-end R1 electric SUVs and pickup trucks. The company has faced challenges following the expiry of key EV tax credits last year. Analysts caution that U.S. policy changes, including import tariffs on auto parts and elimination of fines for companies that fail to meet emission standards, have raised prices and hurt sales.
Rivian expects the R2 to drive a 53% jump in deliveries this year to between 62,000 and 67,000, implying about 23,000 R2 deliveries. The company also plans to expand R2 production to its Georgia facility by 2028.
The R2 comes with hardware for Rivian's Autonomy+ driver assistance system, priced at $49.99 per month or $2,500 as a one-time fee. Lifetime access is included with the launch edition. In March 2024, Rivian also teased a smaller, more affordable compact crossover called the R3 alongside the R2.
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