GoKawiilis transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.
On Thursday, Rivian revealed its most important vehicle to date: the R2, a midsize SUV that eventually will start at under $50,000. As a distinctive EV with an attractive sticker price, the R2 is designed to take Rivian to the next level. In fact, the company is banking on it. If they succeed, then Rivian would be well positioned to usurp Tesla’s status as the most important EV company in America. If it doesn’t, the company may simply cease to exist.
I’m not trying to be overly dramatic. The R2 is increasingly looking like the lone survivor in an apocalyptic wasteland, traveling down a path lined with the corpses of EV programs that had their plugs pulled by cash-strapped automakers. Whether it can pull through this harsh environment remains entirely up to Rivian and its marketing department.
“Rivian’s R2 announcement feels less like a victory lap and more like a statement of intent at a critical moment for the company,” said Paul Waatti, director of industry analysis at AutoPacific. “This is the most difficult EV market automakers have faced, with the federal incentive gone, tariff pressure still disrupting the business case, and consumers becoming much more price-sensitive.”
Image: Rivian
Waati notes that the same day Rivian rolled out its R2 pricing and lineup plans, Honda said it was scrapping three late-stage EV programs for the US market — the Zero Series Saloon and SUV, and Acura RSX — and declared it will write down many billions of dollars to do so.
“That is a stark reminder that even established OEM programs near the finish line are vulnerable in this environment,” Waatti said.
Rivian has outlined an ambitious launch plan for the R2. The company told investors last month that it expects to sell 20,000-25,000 this year, with the first vehicles — the $59,485 R2 Performance with the Launch edition package — likely reaching customers starting in the second quarter. Later in the year, we’re supposed to get the $55,485 R2 Premium. Just so we’re clear, Rivian thinks it can sell upwards of 25,000 of the R2’s first two trims — which are also the most expensive in the lineup — by December. That’s a quicker sales pace than every EV that’s currently on the market aside from the Tesla Model Y, TechCrunch reported recently.
Rivian hasn’t shared an update on the R2’s reservation numbers since July 2024, when Rivian VP of Manufacturing Tim Fallon said they had “well over 100,000.” Since then, nothing. There’s probably some expectation setting going on here. If they reveal a big number, the question immediately becomes about whether the company can match the demand. There’s also production to consider. Tesla’s Model 3 “production hell” looms large over any EV launch, and any delay in delivery can frustrate customers.
Tesla Model Y vs. Rivian R2: Who will win? Image: Tesla
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