Rivian’s Crucial R2 EV Launch To Kick Off With $58,000 Model In Spring

Rivian Automobile will launch sales of its R2 all-electric vehicle this spring with a special edition model priced around $58,000, the company announced Thursday.

The first of the R2 midsize vehicles will be a performance model with a “launch package” that includes a 330-mile range, two engines, special attributes and “lifetime” access to its Autonomy+ advanced driver assistance system. The vehicle will have 656 horsepower and 609 foot-pounds of torque, and is capable of accelerating from 0 to 60 mph in as little as 3.6 seconds.

Rivian is touting a cheaper entry-level version of the vehicle, starting at $45,000, but has said that model, which is expected to be less profitable, won’t be available until late 2027. Its current vehicles start at more than $70,000.

The R2 is seen as a watershed moment for Rivian after the company lost billions of dollars and saw demand decline for its current vehicles: the R1 SUV and pickup and an electric delivery van. The R2, from an exterior perspective, is essentially a smaller version of the R1 SUV, but the company has reworked the vehicle’s software, electrical system and parts in an effort to make it more efficient and cost-effective.

Rivian founder and CEO RJ Scaringe promised investors that the R2 would be a turning point for the company’s profits, sales and technology. The electric vehicle maker also aims to launch hands-free and eyes-free driving to better compete with the U.S. electric vehicle industry leader. Tesla.

“R2 is the key transition vehicle for Rivian to transform into a full-scale automaker, which in turn helps generate operating leverage across the entire business (including R1),” said Andrew Percoco, an analyst at Morgan Stanley.

Morgan Stanley noted that while it is optimistic about long-term demand for the R2, it remains more “cautious in the near term” as the company transitions to its third-generation electric architecture that will debut on the new vehicle.

Others, like Barclays, have questioned demand for the R2, which Rivian says is expected to anchor its current factory in Normal, Illinois, as well as an upcoming multibillion-dollar plant in Georgia that is expected to be capable of producing up to 400,000 vehicles per year.

“There is increasing uncertainty over the R2’s volume outlook following recent negative policy developments (i.e., $7.5K IRA credit expiration, reduction in registered credits, tariff costs), with the R2 likely launching in a period of weak electric vehicle demand in the U.S.,” Barclays analyst Dan Levy said in an August investor note analyzing potential demand for the vehicle.

In addition to changing federal regulations, such as ending federal tax credits of up to $7,500, the R2 comes to market as many automakers withdraw electric vehicle plans or write off billions of dollars in losses amid slower-than-expected vehicle adoption. Analysts have also significantly lowered their expectations for market share growth in the coming years.

Scaringe said the company expects the R2 to compete not only with electric vehicles such as the Tesla Model Y – the world’s best-selling electric vehicle – but also with traditional gasoline vehicles.

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

“R2 is an exceptional vehicle and I believe it will be a game-changer for our customers, our business and the industry,” Scaringe said last month during an investor call on the company’s quarterly results. “R2 is an expansion of the experience we delivered in R1 with design elements and performance that inspire adventure, but in a smaller format and, above all, at a lower, attractive price.”

Shares of Rivian rose ahead of the release of details of the R2, supported by an upgrade from TD Cowen to buy based on a recent in-depth analysis of demand trends for the new electric vehicle.

Scaringe described 2025 to investors last month as a “foundational year” for Rivian, while saying 2026 would mark “an inflection point” for the company.

Rivian’s 2026 guidance includes adjusted pre-tax losses of between $1.8 billion and $2.1 billion and capital expenditures of between $1.95 billion and $2.05 billion. That compares to nearly $2.1 billion in adjusted pretax losses and $1.7 billion in capital spending last year.

Here are additional details Rivian released on Thursday about its planned R2 lineup:

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