"Rivian Automotive ( NASDAQ:RIVN ) is betting its future on the R2, a midsize electric SUV scheduled to enter production in the first half of 2026. Priced at approximately $45,000 before any incentives, the R2 is designed to reach a much broader audience than Rivian's current premium R1 lineup, which starts above $70,000. The EV maker hopes the more affordable model will drive significantly higher volumes, improve gross margins, and finally put Rivian on a path to profitability."
"The electric vehicle market in 2025 has entered a difficult phase. U.S. battery-electric vehicle (BEV) sales are projected to decline year-over-year for the first time since 2019. Cox Automotive forecasts total BEV sales will fall roughly 2.1% to about 1.275 million units, reflecting declining buyer enthusiasm for pure EVs. High upfront costs, persistent range anxiety, and limited public charging infrastructure continue to deter many potential buyers."
Rivian plans R2 midsize electric SUV production in first half of 2026, priced about $45,000 before incentives to target broader buyers compared with R1 lineup above $70,000. The company expects the R2 to boost volumes, improve gross margins, and steer Rivian toward profitability. Stock rose over 52% in a month after analyst upgrades citing R2 timeline and a new in-house AI chip for autonomous driving. The U.S. BEV market is soft in 2025 with projected sales decline, rising interest in hybrids, and persistent barriers like high costs and limited charging. Rivian's recent Q3 strength reflected pre-expiration tax-credit deliveries.
Read at 24/7 Wall St.
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