Rivian Won’t Raise R2’s $45,000 Starting Price Despite New Tariffs

Rivian’s CEO RJ Scaringe confirmed to investors that the upcoming R2 crossover will keep its $45,000 starting price, despite new 25% tariffs on imported vehicles and parts, as reported by Inside EVs. Scaringe emphasized that Rivian has no plans to raise prices, even as tariffs impact other automakers.

The tariffs, introduced under the Trump administration, have forced Rivian to lower its 2025 delivery goal from 46,000-51,000 vehicles to 40,000-46,000. Scaringe acknowledged that Rivian is not immune to rising costs, but the company has a plan.

One key strategy is using U.S.-sourced batteries. The R2 will start with South Korean LG batteries but will switch to LG’s Arizona factory by 2027, avoiding tariff costs. The R2, set to launch in early 2026, is Rivian’s push into the mass market, aiming to compete with the Tesla Model Y. It will offer single, dual, and tri-motor options with over 300 miles of range.

Scaringe highlighted the R2’s importance, as Rivian’s current lineup averages $88,500 in price, limiting its audience. The R2 is meant to bring more buyers to the brand without sacrificing quality.

By maintaining its $45,000 price and shifting to domestic battery sourcing, Rivian is positioning the R2 to succeed even in a tough economic climate.