Rivian announced that its new R2 mid‑size electric SUV will begin deliveries in spring 2026, with a launch‑variant price of $57,990 plus a $1,495 destination fee. The company said the R2 will be available in the United States starting in the second quarter of 2026, marking the first public disclosure of the vehicle’s launch schedule and pricing.
The R2 is positioned as Rivian’s first mass‑market vehicle, designed to compete directly with the Tesla Model Y, Ford Mustang Mach‑E, and Chevrolet Blazer EV. By offering a more affordable, mid‑size SUV, Rivian aims to broaden its customer base and accelerate the company’s path to profitability, a goal that has been a central theme in its recent earnings guidance and investor communications.
Rivian’s recent financial performance provides context for the R2 launch. In Q4 2024 the company generated $1.73 billion in revenue and a $170 million gross profit. Q1 2025 revenue fell to $1.24 billion, but gross profit rose to $206 million, the highest to date. For the full year 2025, consolidated revenue reached $5.29 billion while gross profit totaled $144 million. Segmentally, automotive revenue in Q1 2025 was $922 million and software/services revenue was $318 million, with gross profits of $92 million and $114 million respectively.
Management emphasized the R2’s role in cost efficiency and scale. "This quarter we hit our second consecutive gross profit and our highest gross profit to date at $206 million. We have continued to make significant progress on R2, including vehicle validation builds underway and our Normal, Illinois manufacturing facility expansion on track," said CEO RJ Scaringe. "Our focus on cost efficiency across the business is critical for the launch of our mass‑market product, R2. The R2 bill of materials is approximately 95% sourced and is expected to be approximately half that of the improved R1 bill of materials," he added.
The R2’s lower bill of materials, combined with a 95% sourced supply chain, is expected to cut production costs by roughly 50% compared with the R1 platform. Rivian’s Normal, Illinois plant is expanding to accommodate the new model, and the company’s partnership with Volkswagen provides additional manufacturing and technology resources. The R2 will feature a NACS charging port, giving owners access to Tesla’s Supercharger network and enhancing its appeal to mainstream consumers.
The company has projected 2026 deliveries of 62,000 to 67,000 vehicles, with the R2 Performance model with the Launch Package slated for spring 2026 and other trims following later in the year and into 2027. The launch is seen as a critical step toward achieving profitability by the end of 2026 and establishing Rivian as a competitive player in the mass‑market electric SUV segment.
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