Rivian CEO Says $45,000 R2 Option Is Coming Next Year
Why It Matters
A sub‑$50k R2 expands Rivian’s addressable market and its software licensing strategy creates a new, high‑margin revenue stream.
Key Takeaways
- •Rivian plans $45,000 R2 variant launching next year
- •Tornado damaged Illinois plant but production schedule remains unchanged
- •R2 to include in‑house chips, cameras, radar, LiDAR by year‑end
- •Premium R2 launches first; mid‑spec follows, then $45k base
- •Rivian eyes software licensing deals after $5.8 bn Volkswagen partnership
Summary
Rivian CEO RJ Scaringe told investors that a $45,000 version of the upcoming R2 SUV will roll out next year, even as the company recovered from a tornado that ripped the roof off the south end of its Normal, Illinois factory.
Scaringe said the plant damage has not altered the ramp‑up schedule; teams are rerouting material flow and water‑pumping around the damaged dock, but vehicles continue to leave the line. The R2 will debut as a premium model, with a mid‑spec version later and the $45k base variant slated for 2025, targeting the $50k average U.S. new‑car price.
He highlighted the vehicle’s technology stack – two 800‑TOPS in‑house silicon chips, cameras, radar and a LiDAR unit slated for end‑2024 – and cited strong consumer enthusiasm, including a long line at a Denver demo. Scaringe also referenced Rivian’s $5.8 billion software licensing deal with Volkswagen as a template for future revenue streams.
If executed, the low‑priced R2 could broaden Rivian’s market reach, while the integrated hardware and data‑flywheel accelerate its autonomous‑driving ambitions. The licensing model adds a non‑vehicle revenue source, underscoring the company’s shift toward a broader mobility platform.
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