Rivian starts R2 SUV deliveries, targeting 20‑25k units as US EV market narrows

Rivian began delivering its new R2 sport‑utility vehicle from its Normal, Illinois plant, with the performance trim priced at $57,990. The company aims to ship 20,000‑25,000 R2s by the end of the year, a figure that could make it one of the fastest‑scaling EV launches in U.S. history. CEO RJ Scaringe called the R2 "maybe the most important thing we've launched to date," seeing it as the cornerstone of Rivian's path to profitability and its future autonomous‑driving program.

The R2 is priced near $58,000, above the sub‑$50,000 target the company envisions for later models, and competes directly with the Tesla Model Y in the midsize SUV segment. Rivian is betting on a shrinking pool of U.S. EV competitors after recent policy changes eliminated the federal tax credit and reduced regulatory pressure for electric cars. At the same time, the company is leveraging a $1.25 billion partnership with Uber that includes a $300 million investment and an order for up to 10,000 autonomous R2 robotaxis, with a longer‑term option for 40,000 more.

The launch comes as Chinese manufacturers dominate global EV production and exports, while high U.S. tariffs keep those cheaper models out of the American market, raising the price ceiling for domestic EVs like the R2. Rivian hopes the protected market will sustain demand for its higher‑priced, domestically built vehicle while it works to lower costs and expand production capacity.