Rivian begins deliveries of cheaper electric vehicles

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Electric-vehicle maker Rivian began delivery of a cheaper SUV on Tuesday as it aims to take customers from Tesla and others.The long-anticipated R2, which will eventually be available for less than $45,000, could help boost the market share of the Irvine company better known for vehicles priced around $77,000.The first R2s to roll off the company’s production line in Normal, Ill., are the performance version, starting at $57,990.

Rivian said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.“Rivian is really trying to prove its worth,” said Ivan Drury, director of insights at Edmunds.

“They’ve gone past that initial stage and are hoping to move on to mass market products.” Business After multiple years of layoffs and negative profits, the electric vehicle maker Rivian reported promising earnings for 2025.The Irvine-based automaker is getting ready to release its cheapest vehicle yet.The R2 Performance is still an expensive vehicle for many Americans, but it’s a step down from Rivian’s nearly $77,000 R1S.

It’s typical for an automaker to launch the most expensive version of a new vehicle first, experts said.Whether the R2 will be the success Rivian is hoping for won’t become clear until late 2027, once the standard versions are widely available.

Chief Executive RJ Scaringe said the company is aiming to compete with not just other EV makers, but also traditional auto companies such as Jeep and Subaru.“More mainstream people are going to be in on the R2, especially for the lower-priced models,” auto analyst Brian Moody said.

“You’re always going to have early adopters, but there’s a lot more customers to go around in the $45,000 to $55,000 range.” According to Cox Automotive, the average transaction price for a new EV in the U.S.is $55,000, compared with $49,000 for a gas-power...