Rivian Unveils $45K R2 Crossover, Surprises with R3 and R3X Models; Georgia Plant Plans on Hold

Rivian has unveiled its new R2 crossover, which will start at $45,000, as well as a more compact R3 model; however, the Georgia factory's opening has been postponed.

The R2, comparable in size to the Tesla Model Y, is expected to capture a larger market segment for Rivian compared to the bigger R1S crossover. The announcement of the forthcoming R3 model came as an unexpected development.

Rivian has also unveiled the R3X.

Rivian Automotive has unveiled its latest vehicle, the two-row R2 crossover, which aims to tap into a broader market segment for the struggling electric vehicle manufacturer. The R2 is set to hit the market in 2026, with a base price of approximately $45,000, excluding shipping costs.

In an unexpected reveal, CEO RJ Scaringe also introduced a compact R3 crossover as well as a high-performance R3X variant.

Rivian has not disclosed the price information for the R3.

In an interview with CNBC, Scaringe revealed that Rivian is halting progress on its upcoming Georgia facility, which was initially set to manufacture the R2. Instead, the crossover will now be produced at Rivian's current plant in Normal, Illinois, beginning in the first half of 2026, according to him.

Related Articles

Scaringe clarified that Rivian has no plans to cancel the construction of its plant in Georgia.

He mentioned to CNBC on Thursday that Georgia holds significant importance for them. He praised the exceptional partnership they share with the state and emphasized that their top priority is to bring this vehicle to the market as swiftly as possible. Utilizing their resources in Illinois greatly facilitates this goal.

Scaringe mentioned that initiating manufacturing operations in Illinois would result in a $2.25 billion savings for Rivian, as opposed to establishing the plant in Georgia.

Rivian's stock price increased by 13 percent following the news.

The Rivian R2 SUV.

At the event on Thursday, Rivian announced that the smaller R2 model will offer a maximum range of 330 miles. This new vehicle aims to continue the brand's adventure-focused image while being more budget-friendly than the existing R1S crossover, which has a starting price of $76,700, including shipping.

The R2 closely resembles the boxy design of the R1S, a three-row SUV that accommodates seven passengers. The R2, designed to seat five, is comparable in size to the Tesla Model Y, the top-selling electric car in the United States.

From left to right, Rivian showcases the R2, R3, and R3X crossover models.

"I'm thrilled about the potential of this vehicle to reach a larger audience," Scaringe stated. "The R2 is more than just a car; it's a foundation for future developments," he remarked prior to unveiling the R3 models.

The R2 is essential for the automaker's transition from producing high-end luxury cars to becoming a more mainstream brand.

Last month, the car manufacturer announced plans to reduce its salaried staff by 10 percent and predicted that vehicle production for 2024 would remain steady at around 57,000 units, similar to last year.

In their earnings report for the fourth quarter released last month, Rivian revealed a net loss amounting to $1.5 billion and disclosed plans to cut 10 percent of their salaried workforce to reduce expenses.

During the earnings call, Scaringe emphasized that the R2 embodies the core values of their brand and aims at the sizable midsize SUV market, which currently has few electric vehicle options aside from Tesla.

Related Articles

SUGGESTED FOR YOU

Jeep teases the off-road capable Wagoneer S Trailhawk electric vehicle concept

Contact us with your feedback

Do you have thoughts on this article? Click here to send a Letter to the Editor, and we might feature it in our print edition.

Subscribe to our complimentary newsletters

Daily Recap (Monday through Friday)

Weekly Recap (every Monday)

Urgent News Notifications (when necessary)

I agree to get email updates on editorial articles, exclusive deals, studies, events, and webinars from Automotive News.

EMAIL ADDRESS

Kindly provide a legitimate email address.

Kindly provide your email address.

Kindly complete the captcha verification

Kindly choose at least one newsletter to receive.

Discover additional newsletter choices by visiting autonews.com/newsletters. You have the option to unsubscribe at any moment using the links provided in these emails. For further details, refer to our Privacy Policy.

Digital Version

AUTOMOTIVE & INNOVATIONS NEWSLETTER: Subscribe for a Tuesday afternoon newsletter that compiles updates on products, concepts, and auto show highlights, featuring photo galleries, blogs, and car review links.

Subscribe now to receive top Automotive News directly in your email inbox, at no cost. Select your preferred news, and we will send it to you.

Gain round-the-clock access to comprehensive and reliable reporting on the automotive sector from an international team of journalists and editors, delivering the essential news for your business.

Our purpose

The goal is to educate and equip both present and upcoming business leaders with the essential insights, knowledge, and networks required to succeed in a fast-evolving industry.

1155 Gratiot Ave., Detroit, MI 48207-2997

You can reach them at 877-812-1584

Send us an

Automotive News Print ISSN: 0005-1551 Online ISSN: 1557-7686