Rivian’s crucial R2 EV launch to begin with $58,000 model in spring

Rivian Automotive It will begin selling its landmark R2 all-electric vehicle this spring with a special version priced at about $58,000, the company announced Thursday.

The first of the R2 midsize vehicles will be a performance model with a “Starter Pack” that includes 330 miles of range, dual engines, special features and “lifetime” access to the Autonomy+ advanced driver assistance system. The vehicle will have 656 horsepower and 609 ft-pounds of torque and will be capable of accelerating from 0-60 mph in as little as 3.6 seconds.

Rivian is promoting a cheaper, entry-level version of the vehicle starting at $45,000, but said this model, which is expected to be less profitable, will not be available until the end of 2027. Prices for their current vehicles start at more than $70,000.

The R2 is considered a make-or-break moment for Rivian after the company lost billions of dollars and saw demand for its existing vehicles, such as the R1 SUV, pickup and electric delivery van, decline. Externally speaking, the R2 is essentially a smaller version of the R1 SUV, but the company has reworked the vehicle’s software, electrical system and parts to make it more efficient and profitable.

Rivian founder and CEO RJ Scaringe promised investors that R2 would be a turning point for the company’s profits, sales and technologies. The EV maker is also aiming to launch hands-free, eyes-away driving to better compete against the US EV industry leader Tesla’s.

“R2 is a key transition vehicle in Rivian’s transformation into a scale automaker, which will help increase operating leverage across the business (including R1),” Morgan Stanley analyst Andrew Percoco said.

Morgan Stanley said long-term demand for the R2 is positive, but remains more cautious “in the short term” as the company transitions to the third-generation electrical architecture that will debut in the new vehicle.

Others, such as Barclays, have questioned demand for the R2, which Rivian said is expected to anchor a multibillion-dollar factory in Georgia that is expected to be capable of producing up to 400,000 vehicles a year, in addition to its existing facility in Normal, Illinois.

“There is increasing uncertainty regarding the volume outlook for the R2 following recent negative policy developments (i.e. $7.5K IRA loan expiration, declining registered loans, tariff costs) and the R2 will likely launch during a period of weak U.S. EV demand,” Barclays analyst Dan Levy said in an investor note in August analyzing potential demand for the vehicle.

In addition to changing federal regulations, such as the expiration of up to $7,500 in federal tax credits, the R2 comes as many automakers roll back EV plans or write off billions of dollars in losses due to slower-than-expected adoption of the vehicles. Analysts have also significantly lowered expectations for market share growth in the coming years.

Scaringe said the company expects the R2 to compete not only with EVs like the Tesla Model Y, the best-selling EV worldwide, but also with traditional gas-powered vehicles.

The R2 is comparable to the Model Y in many key areas. They are similar in size, mileage and acceleration time. But the Model Y starts at around $40,000 and already offers many of the driving technologies that Rivian is trying to achieve with the R2.

“R2 is a phenomenal vehicle and I believe it will be a game changer for our customers, our company and the industry,” Scaringe said during a call with investors last month on the company’s quarterly earnings results. “The R2 is an extension of the experience we delivered in the R1, with adventure-inspired design elements and performance in a smaller form factor and, most importantly, at an attractive low price point.”

Rivian’s shares rose ahead of details of the R2, supported by an acquisition upgrade from TD Cowen based on a recent deep dive into demand trends for new EVs.

Scaringe told investors last month that 2026 would be “a turning point” for the company, while describing 2025 as the “foundation year” for Rivian.

Rivian’s 2026 forecast includes adjusted pretax losses of $1.8 billion to $2.1 billion and capital expenditures of $1.95 billion to $2.05 billion. That compares with last year’s adjusted pre-tax losses of about $2.1 billion and capital expenditures of $1.7 billion.

Here are the additional details Rivian released about the planned R2 series on Thursday:

• Spring 2026: R2 Performance and “Launch Package” start at $57,990. All-wheel drive has a range of 330 miles and 656 horsepower and 609 foot-pounds of torque.
• End of 2026: The R2 Premium starts at $53,990. It includes a dual-motor AWD setup that produces 450 horsepower and 537 foot-pounds of torque and provides a range of up to 330 miles.
• first half of 2027: R2 Standard, starting at $48,490. It has rear-wheel drive with 350 horsepower and 355 foot-pounds of torque and a range of 345 miles.
• End of 2027: R2 Standard, starting at around $45,000. The company has released limited other details about the model, except that it expects it to offer more than 275 miles of range.