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Rivian reveals R2 and R3: smaller, more affordable Tesla-fighters

The Rivian R2 SUV
The Rivian R2 SUV.Rivian
  • Rivian revealed its latest electric vehicles, the R2 and the R3, on Thursday.

  • The R2 SUV starts at a more affordable $45,000 compared to Rivian's previous models.

  • Rivian also surprised fans with a new crossover SUV, the R3.

Rivian on Thursday revealed two new SUVs: the long-awaited R2 SUV and a smaller version called the R3.

The smaller and more affordable follow-ups to Rivian's popular R1T truck and R1S SUV are designed to reach more mainstream customers than its pricey R1T trucks.

The R2's $45,000 starting price is more in line with the average new-car transaction price when demand for more expensive EVs is drying up.

The smaller size and lower pricing for the R2 also positions Rivian to compete with Tesla's popular Model 3 and Model Y. Tesla's CEO, Elon Musk, has used pricing reductions on both vehicles to undercut competitors in a tightening EV market.

The launch of the more affordable R2, which the company is pulling up to begin making deliveries in early 2026, is crucial for Rivian's future.

The Rivian R2 SUV
The Rivian R2 SUV.Rivian

Pricing for the R3, built on the same midsize platform as the R2, wasn't announced Thursday. Rivian also didn't specify an expected delivery date, with its CEO, RJ Scaringe, only saying R3 and R3X-variant deliveries will start after the R2's.

"These represent our future," Scaringe said of the R2 and R3, which he said will make Rivian more accessible to more people.

Rivian R3 Crossover SUV
Rivian R3 Crossover SUV.Elliot Ross Studio, INC

Pricing

The R2's starting price is $45,000, Rivian announced Thursday. You can reserve yours now with a $100 deposit.

Vehicle configurations aren't yet available on Rivian's website, so it's not clear yet how much more expensive add-ons or higher trims will run you. It's also not clear yet whether the R2 would qualify for the $7,500 federal EV-tax credit.

A screenshot from Rivian's R2 reveal livestream
A screenshot from Rivian's R2 reveal livestream.Youtube

This lower starting price hits what Scaringe has called a "really important sweet spot" in the EV market that Rivian isn't currently hitting. The R1S costs around $80,000 while the R1T pickup truck costs around $73,000.

Tesla's Model Y starts at about $43,000, while the Model 3 starts at $38,990.

Rivian hasn't released pricing for the R3 and R3X yet.

Range

The R2 delivers a driving range of over 300 miles, Scaringe said.

That's in line with the standard range on the R1S and R1T, though both models have a top-end range of around 400 miles with the Max battery pack.

A screenshot from the Rivian R2 reveal livestream
A screenshot from the Rivian R2 reveal livestream.Youtube

Rivian did not release range details for the R3 vehicles on Thursday.

Design, specs, and other features

The R2 looks like a smaller version of the R1S, with the same boxy stance as well as the bright, eye-like headlights and grille.

The R2 is about 15 inches shorter than the R1S at about 15 ½ feet long. It also sits about 5 ½ inches lower than the R1S at roughly 5 ½ feet tall.

A screenshot from Rivian's livestream reveal of the R2 SUV
A screenshot from Rivian's livestream reveal of the R2 SUVYoutube

The R2 boasts some fun new features, such as a rear window that rolls all the way down to accommodate longer cargo (Scaringe's example was a surfboard).

After several R1 owners asked for them, the R2 also features two large glove compartments in the front seat.

R3 and R3X

The R3 and its R3X performance variant bring a different look to the Rivian lineup as its first crossovers, with a more angular rear end.

The Rivian R3X performance variant
The Rivian R3X performance variantElliot Ross Studio, INC

Rivian shared little on Thursday about the R3, but it appears even smaller than the R2 and features an eye-popping glass roof.

A screenshot from the Rivian R3 reveal livestream
A screenshot from the Rivian R3 reveal livestream.Youtube

Are you placing a preorder for the R2 or R3? Reach out to this reporter at nnaughton@insider.com

Read the original article on Business Insider