Rivian CEO RJ Scaringe has given fans a teaser of the company’s upcoming R2 compact SUV, which is expected to be much more affordable than the R1S, currently priced at $78,000. During an Instagram Q&A session over Memorial Day weekend, Scaringe and Rivian lead designer Jeff Hammoud showed a glimpse of the R2’s shape, which seems boxy like an R1S but smaller. The R2 is set to be launched in 2025, and Rivian is aiming to start building the SUV as early as possible.
Scaringe also revealed that the R1T electric truck will no longer have the “Tank Turn” four-wheel turning feature, citing the risk of the feature potentially damaging trails. Rivian has been revising powertrain options for its vehicles, including the recent removal of a Quad-Motor option paired with the Max battery pack.
Rivian’s CFO, Claire Rauh McDonough, said the R2 will compete in the luxury SUV segment, which includes vehicles like Tesla’s Model Y, Genesis’ GV60, and the Polestar 3. The company expects to produce 200,000 R2 vehicles in 2026 and double it by the next goal. However, production targets for the R2 are still in question as Rivian deals with delays for its new Georgia factory, where the R2 will be built.
Rivian was poised to receive around $1.5 billion in subsidies in Georgia to build the factory, but in October, the incentives were blocked by a state judge. There is also an active “No2Rivian” group in the state that includes residents who oppose the factory and the over $700 million of property tax breaks it would get.
Despite these setbacks, Rivian needs to make moves to catch up in the electric SUV market. Every EV manufacturer is either shipping or close to shipping a compact to midsize electric SUV, hoping to catch up to Tesla’s worldwide top-selling Model Y.
Rivian CEO RJ Scaringe provided a sneak peek of the company’s upcoming R2 compact SUV, set to be launched in 2025 and expected to be more affordable than the R1S. The R1T electric truck will no longer have the “Tank Turn” feature due to the risk of it potentially damaging trails. Rivian aims to produce 200,000 R2 vehicles in 2026 and double it by the next goal. However, production targets for the R2 are still in question as the company faces delays in building its new Georgia factory. Rivian needs to move quickly to keep up with the competition in the electric SUV market.