Rivian’s next-gen EV is drawing comparisons to Tesla’s best-selling Model Y. However, according to Rivian CEO RJ Scaringe, its upcoming R2 will be “worlds different” than the Tesla Model Y. Its R3 will be even more unique, with few like it on the market.
Scaringe made waves in March after revealing Rivian’s next-gen R2 and R3 vehicles. Rivian’s R1T and R1S established the brand as a true premium EV player, but its R2 is expected to take it to draw an even bigger crowd.
Starting at $45,000, Rivian’s R2 is priced just under the average new vehicle in the US. According to the most recent Kelley Blue Book data, the ATP of a new car in the US was $48,644 in June.
Although many media outlets are highlighting a “slowdown” in the US electric vehicle market, EV sales are still growing.
Many automakers had double-digit EV sales growth in the US in the second quarter compared to 2023.
Electric vehicle sales were up over 11% YOY and 23% from the first quarter, with a record volume of 330,463 models in Q2. According to KBB estimates, EVs accounted for about 8% of new car sales.
Despite this, Scaringe said a “lack of choice” is holding the market back. Although Rivian’s CEO pointed out that EV sales are growing faster than the average, more availability would help boost demand. That’s where Rivian’s R2 and R3 come in.
Rivian says R2 and R3 will differ from Tesla Model Y
On MotorTrend’s InEVitable podcast Thursday, Scaringe noted there are very few choices on the market. For example, buyers looking for a mid-size electric SUV have “maybe two or three good choices.”
One of those is the Tesla Model Y, Rivian’s CEO said. Scaringe clarified that there are few “compelling” options under $50,000.
According to Scaringe, most rivals are “following the leader,” releasing Tesla Model Y rivals that end up being worse versions.
Rivian looks to change that with its R2. Scaringe said the Rivian R2 will be unique from Tesla’s top-seller.
Scaringe added although it’s “slightly smaller” than the Model Y, “its ability to perform as an SUV is worlds different than a Tesla Model Y.”
He explained, “You can actually take it off-road, you can take it through a river bed, you can do the things you expect from an SUV.”
And that’s just the start
And that’s just with R2. With R3, Scaringe explained, “It’s a hard press to find something that you could compare it to.” The R3 has the heart of a rally car and impressive ground clearance (220 mm) for its size.
Then, there’s the tri-motor R3X, which Scaringe boasted “it’s insanity.” According to Scaringe, the R3X will pull buyers from things you wouldn’t expect, like hypercars. You can watch the full interview below.
Rivian’s Vice President of Manufacturing Tim Fallon said last month during its third annual Family and Friends Day at its Normal, IL plant that R2 orders are “well over 100,000” and climbing.
Rivian is planning to begin building R2 models in early 2026 in Normal. By then, capacity is expected to reach 215,000, up from around 150,000. The R2 will account for the most output, with around 155,000. Meanwhile, R1T and R1S output will be around 85,000.
Scaringe said that although Rivian has no plans for robotaxis, the R2 platform supports Autonomy like Tesla’s Full Self Driving (FSD).
Rivian’s R1 vehicles will continue improving through software updates, but R2 has “so much headroom” with advanced tech to make it better over time.