- Rivian is gearing up to release its most affordable EV yet.
- The Rivian R2 has the potential to challenge Tesla’s Model Y, especially with growing anti-Tesla sentiment.
- Positioned as a more accessible option, the Rivian R2 aims to attract the average American driver to the brand.
Rivian (NASDAQ: RIVN) stands as one of the few American car manufacturers—besides Tesla—that focuses exclusively on electric vehicles. Under the leadership of CEO RJ Scaringe, the company made waves with one of the largest IPOs in recent years, with shares soaring as much as 53% during its Nasdaq debut.
While the R1T full-size electric pickup truck and the R1S full-size electric SUV boast impressive specs, their high price tags often put them out of reach for many drivers. The R1T and R1S can cost upwards of $70,000, a steep price compared to the average new car, which costs around $49,740, according to Kelley Blue Book.
However, Rivian’s upcoming affordable EV could provide a real opportunity to take on Tesla’s Model Y, the company’s best-seller. Here’s why.
What is the Rivian R2?
The Rivian R2 is a compact and more affordable electric SUV compared to the larger R1S. The R1S demonstrated the company’s design and engineering capabilities, while the R2 could bring Rivian to a broader market, making the brand accessible to more American consumers.
Both the R2 and the forthcoming R3 electric SUVs will feature many of the cutting-edge tech features that have made Rivian a favorite among automotive enthusiasts.
Tesla originally focused on high-end luxury electric vehicles, like the Tesla Roadster, before shifting its focus to more affordable models, such as the Model Y and Model 3. These models went on to become best-sellers, as reported by Hagerty. Will the R2 serve a similar role for Rivian, providing a more budget-friendly option that still holds up to the performance expectations?
Rivian has stated that the R2 midsize electric SUV will start at around $45,000, which qualifies for the full $7,500 federal electric vehicle tax credit, effectively lowering the price to around $37,500. Reservations for the R2 can be made with just a $100 deposit.
The R3, which is expected to be even more compact and affordable than the R2, is also in the pipeline. Rivian promises models equipped with larger battery packs can achieve over 300 miles of driving range, while its current smallest battery offers a range of about 270 miles. However, it’s likely the R2’s range will vary based on the model’s size.
When can you expect the Rivian R2?
Although pre-orders are already open, the first deliveries of the Rivian R2 are anticipated to begin in the first half of 2026. As a result, its market impact will likely be felt in the latter half of 2026. Meanwhile, growing anti-Tesla sentiment, fueled by CEO Elon Musk’s controversial ties with the Trump administration, has started to hurt Tesla’s global sales. This shift in public opinion could open the door for competitors like Rivian to capitalize on the growing market.
If the Rivian R2 launches smoothly, it could emerge as a serious competitor to Tesla’s Model Y, offering comparable pricing, advanced technology, and performance capabilities.
