Rivian R2’s $45,000 Starting Price Won’t Be Raised Despite Tariffs, Says CEO
That would make the Rivian R2 one of the most desirable all-electric crossovers on the market.
Rivian has decided to maintain the R2 crossover’s starting price at $45,000 despite new tariffs from the Trump administration, CEO RJ Scaringe announced during the company’s Q1 2025 earnings call. The Rivian R2 is the company’s first mass-market vehicle, and it is expected to compete in the same market as the Tesla Model Y.
Keeping the R2 Price Steady
During the earnings call, Scaringe emphasized the importance of the R2’s $45,000 price point. “This is just a dynamic situation, so I want to make sure we reflect that, but we’re not planning changes in our $45,000 starting price. This is important for us, and there’s a number of variables that we are actively working on,” the CEO said, according to an InsideEVs report.
At a starting price of $45,000, the Rivian R2 would be able to properly compete with vehicles like the Tesla Model Y and the Ford Mustang Mach-E. The R2 could also attract buyers who are attracted to Rivian’s brand identity, which emphasizes the outdoors and off-road adventures.
The R2 is expected to be offered in single-, dual-, and tri-motor configurations. The vehicle is still expected to start production at Rivian’s Normal, Illinois, plant in the first half of 2026, the company said in its Q1 shareholder letter.
Tariff Challenges, But Strategic Moves Help
President Trump’s 25% tariffs on cars and parts are raising costs across the industry, and Rivian admitted that it is seeing potential impacts on demand, material costs, and availability. “We are not immune to the impacts of the global trade and economic situation, which we expect to impact material costs, material availability, capital expenditures, and the demand backdrop,” Scaringe said during the call.
To mitigate the effects of the Trump administration’s tariffs, Rivian will implement strategies that could help the company handle the additional costs brought by the tariffs. The R2, for example, will initially use South Korea-made LG Energy Solution batteries before shifting to Arizona-sourced LG batteries by early 2027. This sourcing strategy, combined with the R2’s lower price point compared to Rivian’s current $88,500 average selling price for the flagship R1T and R1S, should allow the company to expand its reach to the mass market segment.
EV.com recognizes Rivian’s strategic pricing and production plans for the R2 amidst tariff pressures. You can explore the best offers on Rivian electric vehicles and other EVs we have on our listings here.