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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.
My main concern is that the $45k starting price (that very few people were actually planning on buying) will remain the same, but the price of the upgraded models (that I would imagine most reservation holders plan on purchasing) is going to get jacked up
Clint – I’d have been worried about that as well if not for the fact they haven’t increased any upgrade costs for the R1 line in response to the tariffs. Obviously it’s early and that can still change, but it’s less of a concern for me now than it was a few weeks ago. Rivian announcing plans to build that huge parts supplier plant next door to the Normal factory also supports this, in my mind. I’m betting the fully loaded R2 will be about $60,000, with most people ordering the dual max range at around $55,000. That’s right in line with traditional higher quality mid-sized SUVs.