Hobbit Business Review

Rivian Announces New Electric Vehicles That Will Cost a Lot Less — and Are ‘Bursting With Personality’

Electric vehicle company Rivian announced new electric vehicles on Thursday with prices that indicate that the startup is turning in a new direction — towards more affordable offerings.

Rivian’s existing R1 vehicles start at $70,000 and can be as expensive as $100,000, but the three new midsized electric vehicles that the company announced on Thursday start at or below $45,000.

The R2 is a five-seater, midsize SUV “with a thoroughly developed technology platform that is bursting with personality,” according to Rivian. It is available to reserve now in the U.S. with a $100 commitment, with shipments expected in the first half of 2026.

R2 exterior. Credit: Rivian

R2 interior. Credit: Rivian

The R3 is a midsize crossover with a lower starting price than the R2, though Rivian did not disclose the exact price. It has a performance variant called the R3X that amps up the capabilities of the R3, which aren’t fully clear yet. Both R3 models will start shipping out after R2 shipments start.

The three new electric vehicles. Credit: Rivian

The R2 and R3 lines will have the option of two battery sizes, with the larger one offering at least 300 miles of range per charge and 0-60 mph acceleration in under 3 seconds.

“Our R1 flagship vehicles served as our handshake with the world – with R2 and R3 our obsessive goal is to stay true to Rivian’s product attributes while making our products accessible to a lot more people,” said Rivian Chief Design Officer Jeff Hammoud.

Rivian’s move into a more affordable EV market, with prices comparable to the Tesla Model Y, which starts at $43,990, comes at a time of slowing EV growth. Rivian’s February forecasts showed that the company’s anticipated EV production numbers of about 57,000 vehicles were below analyst estimates. Rivian lost about $2 billion last year and cut its workforce by 10%.

Rivian estimates a savings of over $2.25 billion by producing the first R2 electric vehicles in its existing factory in Illinois. The company said it plans to scale production of R2 and R3 at its Georgia site, and eventually be able to produce 215,000 units of the R1, R2, and other models.

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