Rivian (RIVN) is betting big on its upcoming midsize R2 electric SUV. Starting at about $45,000, the R2 is about half the cost of its current R1S and R1T models. CFO Claire McDonough confirmed the company is working around the clock to launch R2. It will also help take the brand global as Rivian plans to take the R2 overseas.
Rivian R2 will take the EV brand global
McDonough answered a few questions on social media late Wednesday, giving us an update on Rivian’s progress, the smaller R2, R3, and R3X models, profitability, when the brand will launch in Europe, and more.
Rivian is “working around the clock” to expand its Normal, IL, manufacturing plant for the upcoming R2. The sourcing for R2 is now about 95% complete, and production is scheduled to start in the first half of 2026.
The R2 is “just the beginning” with the smaller R3 and sporty R3X crossover set to follow. Rivian will build the R3 and R3X as it expands R2 production at its new Georgia plant.
McDonough confirmed the facility is expected to come online in 2028. Rivian’s CFO said “there’s a lot more magic” in the pipeline beyond these models in the future.
Although the R2 will be about half the cost of Rivian’s current R1S ($77,700) and R1T ($71,700), it won’t “be half the vehicle,” according to McDonough. The R2 will still include the “Rivian essence” with advanced tech, software, and a premium feel.
Rivian closed its loan agreement with the US DOE in January for up to $6.6 billion to fund its new Georgia plant. However, that was just before Trump took office, and Georgia Gov Brian Kemp said last month that he was unsure where the funding stands.
The company remains confident that the funds will be available when they draw on them next year. Rivian will start building the R2 in Normal, but production is expected to expand significantly once the GA plant opens.
Once complete, Rivian’s new plant in Georgia is expected to produce up to 400,000 EVs annually. Last year, the company built just under 50,000 in Normal.
After ramping up production, McDonough said Rivian is excited to expand the Rivian brand internationally, with plans to launch R2 in Europe and other global markets.
Rivian is also expanding its electric van business after opening orders for customers outside of Amazon earlier this year. Just this week, Rivian teamed up with Ben & Jerry’s to launch an electric ice cream truck based on its Commercial Van (check the sweet-looking EV ice cream truck). You can watch the full Q&A above.
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