Rivian's US$40,000 R2 compact SUV set for 2024 reveal amid EV market shift towards more affordable vehicles

Following up on the positive reception of the Rivian R1T and R1S, the electric vehicle startup is planning to expand its portfolio with a new EV platform that will cater to the compact SUV segment. The new platform has come to be known as R2 internally, and by the automotive community, but the naming scheme isn't solidified yet. In a recent Deutsche Bank Global Auto Industry Conference call, Rivian's CFO, Claire McDonough, revealed that the new EV platform will be unveiled at some point in 2024 as a compact crossover. 

The new R2 SUV will undercut the existing R1T and R1S significantly, with a price range of US$40,000 to US$60,000, depending on the trim. Given that Rivian makes its vehicles in the US, the new compact SUV will likely qualify for at least some of the US federal EV tax incentives, offering strong competition to the likes of Tesla's Model Y, although the release date is still years away, and the landscape is almost certainly going to change before then.

After the initial explosion of premium electric vehicles, there's been a shift in the market to focus on more affordable EVs, like the newly-announced Volvo EX30 with its US$35,000 MSRP. Tesla has also had a substantial shift in its pricing structure, with the Model 3 now costing under US$30,000 after incentives in some states. Rivian's CFO also mentioned that the company would investigate releasing the new R2 platform vehicles in other markets, where government subsidies and incentives play a less significant role in the pricing debate.

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