Rivian R2 SUV to cost between $40K to $60K before IRA EV credits

Rivian’s Chief Financial Officer Claire McDonough sat down with Deutsche Bank’s Emmanuel Rosner lately and spoke about the company’s future. During the interview, McDonough discussed the Rivian R2, revealing its potential price range and other details. 

McDonough estimated that the Rivian R2 midsized SUV crossover’s price would range between $40,000 to $60,000. 

“From an overall price vantage point, we see this really targeting the MEB of the broader midsized SUV crossover market. So straddling were the broader ranges of $40,000 to $60,000 area in aggregate. 

“And so that also creates a nice stretch for the brand as you see R1 with an average selling price starting at $73,000, so this lives right below that as we think about the opportunity set available to Rivian,” McDonough told Rosner.

Based on McDonough’s discussion with the Deutsche Bank analyst, the Rivian R2 will be made for the larger addressable market. Although, she also shared that Rivian will still strive to maintain the premium experience the R1 vehicles brought to the company’s customers. The Rivian R2 SUV may also be capable of handling some outdoor adventures like its older siblings. 

McDonough also hinted that Rivian is working with new suppliers for R2 production to keep costs down. 

“So first, one of the key differences is starting place with suppliers. So we talked a little bit about, right, where we were in 2018, 2019, relative to the work that we’ve been conducting over the course of the last 2 years to get that – those material costs down. 

“I hear we’re starting from a very different position of negotiations as it pertains to the R2 platform and the size and skill that, that platform will become over time for Rivian. I’m not just in North America, but globally as well. So for us, right, starting and establishing with that lower material cost is critically important,” she said. 

Rivian CEO RJ Scaringe shared in the past that Rivian’s R2 lineup would qualify for EV incentives under the Inflation Reduction Act (IRA). Scaringe specifically mentioned that the R2 vehicles would use batteries manufactured in the United States.