Rivian is fulfilling its promise to launch a $45,000 EV, but there's a catch

By William Gavin

The electric-vehicle maker just revealed pricing details for its new R2 lineup. Rivian will first launch a $57,990 model, with plans to debut a $45,000 variant in late 2027.

Rivian is kicking off the launch of its R2 midsize platform with the R2 Performance. Additional premium configurations are expected to debut later in 2026, followed by standard - and lower-cost - configurations in 2027.

Rivian Automotive is keeping its promise to sell an electric vehicle for around $45,000. Consumers just have to wait a bit longer to get their hands on one.

After almost exactly two years, Rivian (RIVN) has finally unveiled pricing details for the various models of its R2 electric midsize SUV. While customers will eventually be able to order a lower-priced model, Rivian is first debuting the R2 Performance with all-wheel drive, which starts at $57,990.

The company plans to start delivering that model in the spring, equipped with a limited-time "launch package" that comprises a handful of features, such as a tow package with 4,400 pounds of capacity.

The R2 Performance will be capable of delivering 656 horsepower, accelerating from zero to 60 miles per hour in 3.6 seconds and travel an Environmental Protection Agency-estimated range of up to 330 miles on a single charge. Other trims will come without some of those capabilities in exchange for a lower price tag.

For comparison, the $57,490 Tesla (TSLA) Model Y Performance with AWD can output 510 horsepower and accelerate from a standstill to 60 mph in 3.3 seconds. The midsize SUV also has an EPA-estimated range of 306 miles on a single charge.

"R2 embodies so many of our learnings that we have accumulated - the passion and attention to detail from our team is visible everywhere," CEO RJ Scaringe said in a statement. "I couldn't be more excited."

Moving beyond the R2 Performance, Rivian plans to launch three other trims over the next two years. The $53,990 R2 Premium AWD is set to debut later this year, while the long-range version of the R2 Standard with rear-wheel drive will be available in the first half of 2027. That model starts at $48,490.

From the archives (March 2024): Rivian unveils its new R2 EV. Here's what you need to know.

In late 2027, Rivian plans to offer the R2 Standard variant, set to cost around $45,000. That would fulfill the company's pricing promise announced in 2024. The company offered few details about the model, although Rivian did disclose that it will have an estimated range of at least 275 miles.

"We're leading with the R2 Performance because we want our R2 owners to experience the absolute peak of this new platform," a Rivian spokesperson told MarketWatch, adding that the company is using the model to "set the stage for the entire lineup" while it focuses on scaling production.

Cantor Fitzgerald's Andres Sheppard has called the R2 the "most material catalyst" for Rivian's stock this year. In order for Rivian to hit its overall 2026 delivery target of as many as 67,000 vehicles, up 60% from 2025, the company will be banking on R2 demand.

That's easier said than done. For Rivian to meet expectations, it will have to deliver the best midsize EV launch in five years and do so without the cushion of federal tax credits or a mass-channel dealer network, D.A. Davidson's Michael Shlisky said last month.

Morgan Stanley analyst Andrew Percoco said in a note to clients on Wednesday that he was bullish on long-term demand but more cautious in the short term. TD Cowen's Itay Michaeli on Tuesday projected that R2 demand will eventually grow to between 212,000 and 335,000 units annually.

See: Oil prices are surging. Will that help Tesla and others sell more EVs?

Some of that demand could stem from Rivian's growing focus on self-driving technology. Michaeli said in a note to clients that the new vehicle will be an early player in the market for Level 3 or 4 autonomous-driving hardware.

In late 2025, Rivian outlined plans to introduce hands-off, eyes-off driving and develop its own artificial-intelligence chips. It also introduced an optional subscription package called Autonomy+ for driver-assistance features, such as hands-off driving.

As is the case with Tesla and its Full Self-Driving subscription, Rivian doesn't equip all cars with the company's advanced driver-assistance system. Rather, customers who want it have to pay extra. And, taking another page out of Tesla's book, all R2 customers will receive a 60-day free trial of Autonomy+.

After that, customers will pay either $49.99 a month or a $2,500 one-time fee for Autonomy+. The only exception is that those who buy the Performance model with the launch package will get a lifetime membership for as long as the vehicle's hardware supports Rivian's software.

Percoco said Wednesday that a successful autonomy platform will be "critically important" to support long-term demand for Rivian vehicles. Scaringe expressed a similar view recently.

Autonomous driving will become a "critical part of the purchase decision," Scaringe told analysts last month. "It's going to drive significant change in how consumers think about what vehicles they want to purchase."

Rivian's plans, including building a new factory in Georgia, will be expensive. The Irvine, Calif.-based company currently manufactures vehicles at a plant in Illinois.

The company has guided to capital expenditures of up to $2.05 billion for 2026. It also expects an adjusted loss of up to $2.1 billion after posting a similar loss last year. Rivian ended 2025 with $6.58 billion in total liquidity, almost $6.1 billion of which was cash, cash equivalents and short-term investments.

-William Gavin

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03-12-26 2243ET