Rivian CEO RJ Scaringe stands next to a R2 SUV at an unveiling event in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
Rivian Automotive’s next new vehicle will be an all-electric midsize SUV called the R2 that’s expected to start around $45,000 when it goes on sale in 2026.
The vehicle, which Rivian revealed Thursday, will mark the EV startup’s fourth product following a commercial delivery van and larger, more expensive R1S SUV and R1T pickup for consumers. The R1 vehicles start at roughly $70,000 and can top $100,000.
The R2 comes at a crucial time for Rivian as it attempts to expand its customer base amid slower-than-expected EV sales in the U.S. after automakers flooded the first-adopter market with pricey all-electric vehicles in recent years.
Rivian’s sales pace has slowed in recent quarters, and the company widely disappointed investors last month by missing quarterly estimates and forecasting slightly lower production this year compared to 2023 due to plant downtime.
Rivian CEO RJ Scaringe speaks at an event to unveil a smaller R2 SUV during an event in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
The Amazon-backed company has been burning through cash to improve current EV production and narrow losses. It’s building a new factory in Georgia that’s expected to produce the R2 beginning in 2026.
The R2 will operate on a new EV platform but looks like a smaller version of the R1S SUV. It will be capable of more than 300 miles of all-electric range on a single charge and 0-60 mph time in under3 seconds, the company said.
“R2 represents the essence of our brand, while targeting the significant midsized SUV segment, a massive market with limited compelling EV options beyond Tesla,” Rivian CEO RJ Scaringe told investors last month. “R2 has been developed with vertically integrated propulsion platforms, electronics and software to create an incredible user experience.”
The R2 reveal did little to reverse Rivian’s plummeting stock price, which has been halved this year to under $12 a share. The stock received a rare double downgrade from UBS in late February.
Rivian’s stock performance
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