Rivian, the electric vehicle brand founded and led by CEO RJ Scaringe, unveiled a smaller, cheaper SUV the company plans to start selling in 2026 — and two even more compact electric crossovers that will likely be even more affordable. Its shares, which have sagged in recent weeks, rose more than 12% on the news.
Deliveries of the new R2 SUV, shorter and lower than the Irvine, California, company’s current R1S model, will begin in the first half of 2026 with a base price of $45,000, Scaringe said on Thursday in Laguna Beach, California. The additional two models, the R3 and R3X, a performance-oriented variant, will follow though he didn’t provide their pricing or on-sale dates.
And in an additional surprise announcement, he said R2 production will begin at its Normal, Illinois, plant, rather than at the $5 billion factory it intends to build in Georgia, previously identified as the production site for future models. Normal currently makes its R1S, R1T pickup and electric delivery vehicles.
The models “represent our future,” Scaringe said. “These represent what we’ve been building to.”
(For more, see How RJ Scaringe Is Driving Rivian Straight At Elon Musk)
Shares of Rivian rose 9.4% to $12.06 in afternoon Nasdaq trading following the debut of three vehicles. They were hammered last month after the company announced plans to cut 10% of its workforce and projected that production of its current models would be flat this year at about 57,000.
Rivian debuted as the best-funded auto startup in U.S. history, raising more than $11 billion from private investors before an IPO in 2021 that netted an additional $13 billion. But it’s still working to live up to high expectations, and struggling to prove it can challenge the EV market dominance of Tesla. U.S. EV sales are expected to grow again this year, albeit at a slower pace than in 2023, when they topped 1 million units for the first time. Demand for higher-priced models, including Rivian’s, which can sell for more than $70,000, is expected to take the biggest hit.
The R2’s lower price point is likely to boost the company’s sales significantly, particularly if it meets battery and content requirements to qualify for a $7,500 tax incentive. The midsize EV will use a new, more powerful battery cell and get up to 300 miles of driving range per charge. Rivian started taking reservations for the model on Thursday, requiring a $100 deposit.
Scaringe didn’t give any details on what the smaller R3 will cost, beyond saying that it will be a more affordable, urban vehicle.
