Rivian recently revealed its $45,000 R2 SUV, marking its most significant venture to date. This announcement took place amidst an atmosphere of anticipation and excitement at the Rivian South Coast Theater in Laguna Beach, with the Pacific Ocean nearby. The event, attended by early Rivian supporters, family, and media, celebrated the launch of the R2, an all-electric SUV aimed at proving Rivian’s enduring presence in the electric vehicle market.
The audience was treated not only to the debut of the R2 but also to a sneak peek at two additional vehicles from the forthcoming R3 platform, accompanied by updates on production plans and a glimpse into future “adventure” accessories aligning with Rivian’s active lifestyle brand.
Rivian founder and CEO RJ Scaringe talks about the R3, a surprise reveal Thursday, March 7. Image Credits: Kirsten Korosec
The spotlighted R2 SUV features two rows, seats five, and offers a range exceeding 300 miles, starting at a base price of $45,000. Rivian also teased the audience with the R3 and the R3x performance, emphasizing sporty design and compactness.
An unexpected turn in the event was the announcement of a strategic production shift. Rivian disclosed plans to begin manufacturing the R2 in the first half of 2026 at its Normal, Illinois facility, diverging from the initial plan to utilize a new $5 billion factory in Georgia. This move is expected to save Rivian $2.25 billion.
Image Credits:Â Kirsten Korosec
Rivian’s current lineup includes the R1T truck, the R1S SUV, and two versions of its commercial van, all produced in Normal. The transition to the Normal factory is a strategic effort to expedite production and delivery, optimize existing resources, and boost the site’s annual capacity to 215,000 units.
Despite the focus on the Normal facility, Rivian acknowledges the Georgia plant’s role in its future expansion, although its construction timeline remains uncertain.
Rivian head designer Jeff Hammond describes details in the R2. Image Credits: Kirsten Korosec
Scaringe referred to Rivian’s initial EV models as a “handshake” to the world, with the R2 and R3 representing a more comprehensive embrace. As the EV market evolves, the R2 aims to stand out not only for its affordability but also for its manufacturing efficiency and innovative design, signaling Rivian’s path toward profitability.
The challenge of achieving profitability is underscored by Rivian’s loss of $43,372 per unit on its R1 models in the last quarter of 2023. The company is focusing on manufacturing efficiencies and supplier negotiations to turn the financial tide with the R2, which boasts enhanced features, including advanced self-driving capabilities, signaling a strategic pivot in Rivian’s approach to the electric vehicle market.
