Rivian is a startup electric vehicle manufacturer that has been making waves in the automotive industry with its innovative and adventurous products. The company has already launched its R1T pickup truck and R1S SUV, which are both based on the same R1 platform and offer impressive performance, range, and features. Rivian has also secured a massive order of 100,000 delivery vans from Amazon, which are expected to hit the roads by 2025.
But Rivian is not resting on its laurels. The company has already announced its plans to develop a new R2 platform, which will spawn a series of smaller and more affordable electric vehicles for the global market. The R2 platform will be different from the R1 platform in terms of size, design, and drivetrain configurations. Rivian has teased some details of its upcoming R2 SUV, which will be the first vehicle to use the new platform.
What We Know About the R2 SUV
Rivian has not revealed much information about the R2 SUV yet, but we can glean some clues from the company’s statements and teasers. Here are some of the things we know so far:
- The R2 SUV will be smaller than the R1S, which measures 202 inches long, 79 inches wide, and 72 inches tall. The R2 SUV will likely compete in the compact or subcompact SUV segment, which includes popular models like the Tesla Model Y, the Hyundai Kona Electric, and the Ford Mustang Mach-E.
- The R2 SUV will have a more affordable price tag than the R1S, which starts at $78,000 before incentives. Rivian has not disclosed the exact pricing of the R2 SUV yet, but it is expected to be significantly lower than the R1S to appeal to a wider range of customers. Some analysts have speculated that the R2 SUV could start around $40,000 or $50,000.
- The R2 SUV will have a different design language than the R1S, which features a boxy and rugged appearance. Rivian CEO RJ Scaringe and lead designer Jeff Hammoud have shown a glimpse of the R2 SUV’s shape in an Instagram Q&A session in May 2023. The two stood in front of a clay model of an R2 covered with a black cloth, outlining a vehicle that seems to have a more rounded and sleek profile than the R1S.
- The R2 SUV will have different powertrain options than the R1S, which offers three choices: a dual-motor with 300 miles of range, a tri-motor with 240 miles of range, and a quad-motor with 410 miles of range. The R2 SUV will likely have dual- and tri-motor configurations only, as Rivian has recently removed the quad-motor option from its website. The R2 SUV will also not have the “Tank Turn” feature that allows the R1S to spin on its axis by rotating its wheels in opposite directions. Scaringe said that this feature was scrapped due to environmental concerns.
When Will the R2 SUV Launch?
Rivian has not announced a specific launch date for the R2 SUV yet, but it has indicated that it aims to start production by 2025. In a letter to shareholders issued in June 2023, Rivian said that it was focused on ensuring that its $17 billion cash balance as of March 31, 2023 could support the launch and ramp of its R2 vehicle platform by 2025. Rivian also said that it was prepared to scale up its production capacity to 150,000 units per year by then.
However, Rivian may face some challenges and delays in meeting its targets for the R2 SUV. The company has been struggling with supply chain issues and pandemic-related disruptions that have affected its delivery timelines for its existing products. The R1T pickup truck was originally scheduled to ship in June 2023 but was pushed back to September 2023. The R1S SUV was supposed to follow in August 2023 but was also delayed to October 2023. The Amazon delivery vans were expected to start rolling out in late 2023 but were also postponed to early 2024.
Another potential hurdle for Rivian is its planned factory in Georgia, where it intends to build the R2 SUV. Rivian was supposed to receive about $1.5 billion in subsidies from Georgia to construct the factory, but in October 2023, a state judge blocked the incentives due to legal challenges from local residents who opposed the tax breaks. Rivian has said that it is confident that it will resolve the issue and proceed with its plans for Georgia, but it remains unclear how long it will take.
Why Is the R2 SUV Important for Rivian?
The R2 SUV is an important product for Rivian because it represents the company’s ambition to expand its portfolio globally across different price points and form factors. Rivian has established itself as a premium electric vehicle brand with its high-end and adventure-oriented products like the R1T and R1S. But Rivian also wants to tap into the mass market and reach more customers who are looking for smaller and cheaper electric vehicles.
The compact and subcompact SUV segments are among the most popular and fastest-growing categories in the electric vehicle market. According to data from JATO Dynamics, compact electric SUVs accounted for 28% of global electric vehicle sales in 2020, while subcompact electric SUVs accounted for 12%. These segments are expected to grow further as more automakers launch new models and consumers seek more affordable and practical options.
The R2 SUV will be Rivian’s entry point into these segments and will allow it to compete with established players like Tesla, Hyundai, Ford, Volkswagen, and others. The R2 SUV will also help Rivian diversify its revenue streams and reduce its reliance on its existing products and customers. Rivian’s CFO Claire McDonough said during a Bank of America summit that Rivian expects to produce 200,000 units of the R2 SUV in 2026 and double it by 2027. McDonough also said that Rivian aims to achieve profitability by 2027.
