Rivian plans to launch the R2 in 2026, a $45,000 mass-market SUV that must succeed to enable manufacturing scale and long-term profitability. Rapid production ramp-up and coordinated supplier management are critical to cover fixed costs and make unit economics work. Rivian also plans additional models (R3, R4, R5) and is integrating AI to advance self-driving capabilities while exploring next-generation battery technologies. The company views rising Chinese EV competition and shifting U.S. policy and tariffs as significant industry factors. The R2 represents the most consequential product bet to date for Rivian's business trajectory.
Rivian is on the precipice of a very big year. In 2026, the California-based electric-vehicle startup plans to unleash the R2, a $45,000 mass-market SUV tasked with bringing it into the big leagues. And, as the automaker's CEO sees it, there's little room for error. "For a big company that has lots of other products, you can absorb that not going well, and the business will be fine," Rivian founder R.J. Scaringe told InsideEVs in an interview. "For a Rivian, it must go well."
In this lengthy conversation, Rivian's CEO takes us back to the startup's origins in 2009 and talks about the vehicles coming next, like the R3, R4 and R5. He breaks down how AI is revolutionizing Rivian's self-driving efforts and explains where he sees battery tech going next. We chat about the rise of Chinese EVs, which Scaringe says much of the auto industry is getting all wrong.
The crossover promises to deliver the manufacturing scale Rivian needs to even think about long-term profits, but a lot needs to go right first. Ramping up production quickly while managing an "orchestra" of suppliers is absolutely critical, Scaringe said. "Because the nature of this is if you're not ramped, you don't have the volume to cover your fixed costs. And if you don't have the volume to cover your fixed costs, the numbers just don't work," he said.
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