You can be on Entrepreneur’s cover!

Rivian Announces New Electric Vehicles That Will Cost a Lot Less — and Are 'Bursting With Personality' The three midsized electric vehicles the company announced on Thursday will start at around $45,000.

By Sherin Shibu

Key Takeaways

  • Rivian is an electric vehicle company that makes the R1, which starts at $70,000 and can go up to $100,000.
  • The company announced three new midsized electric vehicles on Thursday that will start at or below $45,000.
entrepreneur daily

Electric vehicle company Rivian announced new electric vehicles on Thursday with prices that indicate that the startup is turning in a new direction — towards more affordable offerings.

Rivian's existing R1 vehicles start at $70,000 and can be as expensive as $100,000, but the three new midsized electric vehicles that the company announced on Thursday start at or below $45,000.

The R2 is a five-seater, midsize SUV "with a thoroughly developed technology platform that is bursting with personality," according to Rivian. It is available to reserve now in the U.S. with a $100 commitment, with shipments expected in the first half of 2026.

R2 exterior. Credit: Rivian

R2 interior. Credit: Rivian

The R3 is a midsize crossover with a lower starting price than the R2, though Rivian did not disclose the exact price. It has a performance variant called the R3X that amps up the capabilities of the R3, which aren't fully clear yet. Both R3 models will start shipping out after R2 shipments start.

Related: Amazon Expands Eco-friendly Electric Vehicle Fleet

The three new electric vehicles. Credit: Rivian

The R2 and R3 lines will have the option of two battery sizes, with the larger one offering at least 300 miles of range per charge and 0-60 mph acceleration in under 3 seconds.

"Our R1 flagship vehicles served as our handshake with the world – with R2 and R3 our obsessive goal is to stay true to Rivian's product attributes while making our products accessible to a lot more people," said Rivian Chief Design Officer Jeff Hammoud.

Rivian's move into a more affordable EV market, with prices comparable to the Tesla Model Y, which starts at $43,990, comes at a time of slowing EV growth. Rivian's February forecasts showed that the company's anticipated EV production numbers of about 57,000 vehicles were below analyst estimates. Rivian lost about $2 billion last year and cut its workforce by 10%.

Relevant: 'Next Tesla' Electric Car Startups Hit Speed Bump: 'Investors Want To See Demand'

Rivian estimates a savings of over $2.25 billion by producing the first R2 electric vehicles in its existing factory in Illinois. The company said it plans to scale production of R2 and R3 at its Georgia site, and eventually be able to produce 215,000 units of the R1, R2, and other models.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

I Designed My Dream Home For Free With an AI Architect — Here's How It Works

The AI architect, Vitruvius, created three designs in minutes, complete with floor plans and pictures of the inside and outside of the house.

Business News

This Fan-Favorite Masters 2024 Item Is Still $1.50 as Tournament Menu Appears Unscathed by Inflation

The pimento cheese sandwich is a tradition almost as big as the tournament itself.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Here's One Thing Americans Would Take a Pay Cut For — Besides Remote Work

An Empower survey found a high percentage of respondents would take a pay cut for better retirement benefits and remote work options.

Business Ideas

7 Link-Building Tactics You Need to Know to Skyrocket Your Website's Rankings

An essential component of SEO, link building is not just a 'Set them and forget them' proposition, but a dance of skills and strategies.