Rivian (NASDAQ: RIVN) is one of the few American car manufacturers aside from Tesla that exclusively produces EVs. The company, led by CEO RJ Scaringe, had one of the world's biggest IPOs in recent history, with shares rising as much as 53% in its Nasdaq debut.
The R1T electric full-size pickup truck and R1S full-size electric SUV have impressive specs, but high sticker prices make them unattainable for many drivers. A new Rivian R1T or R1S costs nearly $70,000, which is much more than the average new car price of $49,740, according to Kelley Blue Book.
Rivian's new affordable EV could have a better chance at besting the Tesla Model Y (the company's most popular model). Here's why.
What is the Rivian R2?
The Rivian R2 is an upcoming midsize electric SUV that is more affordable and compact than the R1S. The Rivian R1S full-size electric SUV showcased what the company is capable of from a design and engineering standpoint. Now, the R2 can help the Rivian brand become accessible to more American drivers.
The upcoming Rivian R2 and R3 electric SUVs will include many of the same tech features and capabilities that earned the admiration of auto enthusiasts.
Tesla originally manufactured high-priced performance luxury electric vehicles like the Tesla Roadster. The more affordable Model Y and Model 3 EVs went on to become best-selling models for Tesla, as reported by Hagerty. Will the R2 have the same effect for Rivian as a more affordable alternative to its first models?
How much does the Rivian R2 cost?
According to Rivian, the R2 midsize electric SUV will start at around $45,000. It is expected to qualify for the full $7,500 federal electric vehicle tax incentive, bringing its starting price closer to $37,500. You can reserve an R2 electric SUV for just $100.
The R3 is "designed with even tighter dimensions and at a lower price point than R2" says Rivian. The American automaker says that models equipped with larger battery packs are capable of over 300 miles of driving range. Rivian's current least powerful battery pack provides 270 miles of driving range, but the standard R2 could have less range as a smaller model.