Electric vehicle maker Rivian plans to showcase the first R2 model in early 2024, two years before the car is scheduled to hit the market.
Rivian CFO Claire McDonough revealed the timeline during a discussion with Deutsche Bank analyst Emmanuel Rosner. During their conversation, McDonough noted that the design of the SUV crossover was nearly complete and revealed a pricing range of $40,000 to $60,000, substantially cheaper than the company’s current lineup. “R1 has an average selling price of $73,000, so this lives right below that,” she explained. The electric car manufacturer’s new Georgia plant is slated to produce the EV starting in 2026 and may soon add a truck variant as well.
The R2 will feature proprietary electric motors and batteries designed by Rivian, both of which are important for the company’s cost-cutting measures. In earlier statements, McDonough noted these two innovations were “critical to achieve our long-term target cost structure across current vehicle platforms, as well as R2.”
The new product is an essential next step for Rivian, as it looks to lower expenses and boost demand through lower prices. Its two luxury-priced EVs, the R1T pickup and the R1S SUV, have achieved admirable sales for their high MSRP but face an uphill battle against industry giants such as Tesla, which has repeatedly discounted its lineup since the start of the year. Inventory is also an obstacle. The car manufacturer’s first-quarter production totaled 9,395 units, of which 7,946 were sold to customers. However, the automaker said it was still on track to build 50,000 units by the end of the year.
