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Jul 11, 2023

Rivian R2 Compact SUV Targeted for 2026 Launch, to Cost $40,000

The American startup's second model will be revealed in 2024, according to recent comments from Rivian's CFO. Rivian is working hard to ramp up production of its R1T pickup and R1S SUV—along with

The American startup's second model will be revealed in 2024, according to recent comments from Rivian's CFO.

Rivian is working hard to ramp up production of its R1T pickup and R1S SUV—along with assembling EDV vans for Amazon—and built more than 9000 vehicles in the first quarter of 2023. But while the company's Normal, Illinois, plant churns out those vehicles, Rivian is also busy developing its next EV. The automaker's chief financial officer, Claire McDonough, revealed some details on the upcoming R2 at an automotive conference, as first reported by Carbuzz.

According to McDonough, the R2's design is almost finished and will expand on the distinctive styling that has helped the R1T and R1S stand out in a sea of new EVs. The R2—which is expected to debut as a compact SUV but could later be joined by a pickup variant—will be shown to the public for the first time in early 2024 before sales kick off in 2026.

McDonough confirmed that the R2 will be more affordable than the R1T and R1S, with pricing ranging from $40,000 to $60,000. "R1 has an average selling price of $73,000, so this lives right below that," she explained. The R2 will continue the adventurous vibe started by the R1T, with McDonough stating that the "R2 really leans on the brand and ethos of what R1 has started." Along with the company's unique positioning as the outdoorsy EV brand, McDonough cited "the UI/UX experience" as one of the other areas where the R2 can differentiate itself.

Still, some sacrifices will have to be made to maintain a lower price point. As Rivian's CEO, RJ Scaringe, explained earlier this year, "On a vehicle with a cost target, you have to decide where you're going to spread your investment." We wouldn't be surprised to see the R2 sacrifice some off-road capability for on-road comfort or interior quality. The startup also says it has revised how it interacts and negotiates with suppliers to keep material costs down, learning from its experience with the R1T and R1S.

Sales of the R1T and R1S have been pretty impressive so far, especially for a relatively pricey first product from a startup company. But the R2 has the potential to transform the brand, opening up Rivian ownership to thousands more potential customers, boosting the company's sales, and truly bringing Rivian into the mainstream. But as Tesla found with the Model 3, mass producing an affordable car is a huge challenge, and Rivian will still have to survive the next few years.

Caleb Miller began blogging about cars at 13 years old, and he realized his dream of writing for a car magazine after graduating from Carnegie Mellon University and joining the Car and Driver team. He loves quirky and obscure autos, aiming to one day own something bizarre like a Nissan S-Cargo, and is an avid motorsports fan.

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