Rivian is currently increasing production and deliveries of the R1S and R1T models, as well as Amazon’s EDV. In addition to these models, they are actively developing their next production vehicle, the smaller R2 electric SUV. Now we learn that the R2 is planned to be unveiled for the first time in early 2024 and is slated for release in 2026. The company has set a target price range of $40,000 to $60,000 for the R2, aiming to offer consumers a more accessible option in the electric SUV market.
During the Deutsche Bank’s Global Auto Industry Conference Call on June 15, Claire McDonough, Rivian’s Chief Financial Officer, provided additional insights about the upcoming model. According to McDonough, the R2 is aimed at capturing a significant share of the “broader midsized SUV market“.
This positioning indicates a targeted price range of $40,000 to $60,000. “That also creates a nice stretch for the brand. R1 has an average selling price of $73,000, so this lives right below that,” she said. It’s worth noting that competitors like the Tesla Model Y and Ford Mustang Mach-E start at around $47,000.
More: What We Know About The 2026 Rivian R2 Electric SUV and truck
In a recent visit to Rivian’s design studio, the high-ranking official had the opportunity to examine the clay models of the R2 firsthand. McDonough said that they are “incredibly excited about the differentiation of the products“, revealing that the R2 “still maintains some of the “adventure aesthetic” found in the R1, but with a greater focus on affordability. Official videos have teased covered clay prototypes of the R2, showcasing a boxy silhouette, ample ground clearance, and a noticeably smaller footprint compared to the R1S model.
As pointed out by CarBuzz, McDonough further emphasized that the R2 strongly aligns with the brand and ethos established by the R1, particularly regarding its on-road and off-road performance capabilities. Additionally, she highlighted the significance of technology in this segment, including the user interface and experience. Rivian recognizes that at the targeted lower price levels, premium interiors may not be as feasible. As a result, they are placing a great emphasis on delivering an exceptional technology-driven experience for R2 owners.
“In the premium end of the space, you can utilize premium interiors to create an experience for a customer,” said McDonough. “When you get down to these lower price levels, it’s really how you think about the brand positioning, the UI/UX experience for the customer, and how you think about the leverage and opportunities that we have with all of these cross-platform investments.”
More: Rivian Will Start Using Tesla Charging Plug In 2025
Rivian says it will apply the lessons learned from R1 production process into the development of the R2. As part of this process, the company is engaged in negotiations with suppliers to secure lower material costs by leveraging the increased production volume. Concurrently, Rivian aims to enhance the interplay and collaboration between their manufacturing, engineering, operations, and product development teams. By optimizing these interactions, Rivian wants to streamline processes and drive further improvements in the production and development of the smaller and more mainstream R2.
You can view the complete transcript of McDonough’s interview from Seekingalpha here. While we wait for more revealing teasers or actual prototypes of the Rivian R2, you can explore our gallery below to see our AI-generated renderings that offer an imaginative depiction of the upcoming model.
