- Rivian promises $45,000 USD price tag for R2.
American EV manufacturer Rivian currently offers two products to consumers, the R1T pickup truck and the R1S SUV. Both models come with a hefty price tag, which is to be expected for a startup's first offerings.
The company has been promising for some time a more affordable entry-level model. We know that the first of those will be the R2, before two variants of a new RS3 arrive in 2027.
This week, CEO R.J. Scaringe said during the company's earnings call that development of the R2 is progressing well and that the target of starting production in the first half of 2026 is still viable.
The executive also took the opportunity to confirm that the model's base price would remain at $45,000 USD, despite the automotive tariffs that will be imposed on some of the parts that make up the vehicle. That means that even though the Rivian R2 will be assembled in the U.S., it won't be exempt from certain tariffs. The company also has time on its hands to find every possible way to reduce the impact of tariffs, which allows it to promise the price at $45,000. In particular, starting in 2026, the company plans to source its batteries from a supplier in Arizona instead of Korea, which will reduce the impact of tariffs.
Also helping to keep production costs down is the fact that Rivian will begin assembling the model at its existing plant in Normal, Illinois. The company's planned second plant willreportedly be ready to produce vehicles in 2028.
There's no doubt Rivian will need a cheaper product and more sales volume to ensure profitability. Forecasts hover around 50,000 units a year, and they'd like to increase that number. The manufacturer still expects to lose between $1.7 billion and $1.9 billion this year, but believes the R2 is the model that will allow it to reach profitability.
