As customers, VIPs guests and media crammed into the Rivian South Coast Theater in Laguna Beach on Thursday — the Pacific Ocean crashing on the beach just a few hundred feet away — a mix of hope and excitement rippled through the arena. The occasion was the unveiling of the Rivian R2, a smaller and more affordable electric SUV and a vital vehicle for the new EV it hopes to show the world is here to stay.
Early Rivian supporters, friends and the young family of founder RJ Scaringe filled the seats of the renovated theater. The air was filled with talk of their Rivian vehicles, cheers and congratulations, hugs and handshakes, and talk of their hopes for R2.
When the Rivian R2 arrived, it didn’t come alone. Scaringe had two more “moments”, showing off two more electric vehicles under the next-generation R3 platform, along with production updates and advice on “adventure” accessories to match the active lifestyle brand that has become famous for Rivian. .
The R2, a two-row, five-seat, all-electric midsize SUV that will have more than 300 miles of range and a base price of $45,000, was the main event. The encore was the smaller R3 and performance R3x, a compact hatchback-style EV with sporty vibes.
A $2.25 billion move
Rivian founder and CEO RJ Scaringe talks about the R3, a surprise reveal on Thursday, March 7. Image Credits: Kirsten Korosech
R2, which customers can start reserve today, it will be available in several powertrains, a single engine, a dual engine and a three engine version. Some of the biggest applause came when Scaringe announced that the company was bringing production of the R2 up to the first half of 2026.
Inside that announcement was a multi-billion dollar surprise. Scaringe said the R2 will be produced at the automaker’s Normal, Illinois plant — a change from the company’s original plan to produce the R2 at a $5 billion plant near Atlanta, Georgia, which is just now under construction. This change will save the company $2.25 billion.
Today, Rivian produces four vehicles at its single plant in Normal: its two consumer vehicles, the R1T truck and the R1S SUV, and two versions of its commercial truck.
John Krafcik, former Waymo CEO and Rivian board member, told TechCrunch on the sidelines that the move to the Normal plant was the big story today — a story that would give the automaker the ability to save money and get vehicles into customers’ hands sooner.
In a regulatory filing after the revelation, the company called it quits “By significantly reducing the amount of capital required to bring R2 to market, the company believes this approach significantly reduces launch and associated ramp risk. effectively leverages its existing production and operations teams; and expands total capacity for the site to 215,000 units per year.”
On stage, Scaringe gave another nod to the Georgia plant, noting that it was important to the company’s strategy to scale up production of R2 and R3. However, it’s unclear when that Georgia plant will be back in the game. The company said in the filing that “the timing for restarting construction is expected to be later to focus our teams on the efficient launch of R2 in Normal, Illinois.”
From handshake to hug
Image Credits: Kirsten Korosech
Scaringe called the company’s first EVs, the R1S and R1T, the company’s handshake to the world. The R2 and R3, which sent the crowd into a frenzy – their shrieks and screams echoed through the theater – were clearly designed as the full hugger.
Beaming on stage as he waited for R3 to launch, Scaringe seemed determined to send a message: Rivian has arrived.
The all-electric vehicle is still two years away from production. And when it does appear, the R2 will face an evolving EV market with more options and players, many of which are expected to fall into the same, more affordable category. Scaringe and the design team have leaned towards R2 styling and accessories – the trademarks of the R1S and R1T.
Rivian promises that the R2 will be something completely different. It won’t just be lower cost, making it more accessible to a wider customer base, and it will be produced in volume. The R2 will also reflect manufacturing maturity — a vehicle loaded with efficiencies that will ultimately lead Rivian down the road to profitability.
Rivian lead designer Jeff Hammond details the R2. Image Credits: Kirsten Korosech
Rivian is losing money on each R1S and R1T it makes, to the tune of $43,372 per unit delivered in the fourth quarter of 2023, according to regulatory filings. So finding efficiencies to lower manufacturing costs as well as better deals with suppliers is critical to Rivian’s goal of making money on every vehicle it sells.
Scaringe highlighted how the company worked on changes to reduce costs while maintaining, and even improving, the R1 vehicles.
The company is focusing on vertical electronics integration, further developing its software platform, and packaging the battery and other components to improve manufacturing capability. The R2 is also loaded with sensors – 11 cameras and five radars – and more powerful computers to support what Scaringe described as a high level of “self-driving”. He later added that the feature, which will be activated on the highway, will allow drivers to take their hands off the wheel and their eyes off the road.
