In an interview with Forbes, Rivian CEO RJ Scaringe highlighted the need for more choice in the electric vehicle (EV) market, noting that a pricing “sweet spot” around $48,000 is crucial. The upcoming Rivian R2 EV, set to be unveiled on March 7, aims to hit this mark, offering consumers an adventure-oriented EV at an attractive price point.
Scaringe emphasized the importance of pricing strategy, stating that $48,000 is a key target to make EVs a viable option for customers transitioning from combustion-powered vehicles. This figure aligns with the average transaction price of vehicles in the United States, making the R2 competitive in the market.
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The R2’s pricing strategy is further bolstered by its eligibility for the full $7,500 tax credit, unlike the current R1S SUV and R1T pickup, which are eligible for a $3,750 tax credit if the MSRP is under $80,000. Leasing the R1S and R1T unlocks the full credit regardless of the MSRP.
Scaringe noted that while a $3,750 reduction on a $70,000+ vehicle may not be significant, a $7,500 reduction on a $45,000 vehicle is substantial, representing approximately 16% of the MSRP. This reduction brings the R2’s price down to a more appealing $37,500, making it a compelling option for consumers.
The Tesla Model Y, Rivian’s direct competitor in this price range, also falls within the $40,000 to $50,000 range and qualifies for the $7,500 tax credit. Rivian’s focus on offering a competitive EV in this price range aligns with its goal of becoming a mass-market manufacturer.
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Last year, Rivian delivered 50,000 EVs in the United States, including the R1S, R1T, and Electric Commercial Van, with both the R1T and R1S ranking among the top 20 best-selling EVs in the country. However, Scaringe emphasized that Rivian is still not a mass-market manufacturer, with the goal of achieving mass-market status.
The R2, scheduled for production in 2026 at a new factory in Georgia, will play a crucial role in Rivian’s mass-market aspirations. With its lower price and global availability, the R2 aims to attract a wider audience, expanding Rivian’s reach beyond North America to Europe and eventually China.
