Why Rivian will keep the $45,000 base model R2 until “late 2027”

Rivian on Thursday revealed specs and pricing details for its core R2 SUV, but the company also finally answered an age-old question: When will customers be able to buy the promised $45,000 base model?

According to the company’s press materials, the answer is “late 2027.” And there’s a catch. The language Rivian is currently using is that the base model R2 will be priced “starting at approximately $45,000.” This is a notable change from how the company recently advertised on its website that the R2 “starts at $45,000” (emphasis mine).

This is not surprising at all. As TechCrunch first reported last week, Rivian removed the “starting at $45,000” phrase from its website in February.

Also, a lot has changed since Rivian first announced R2 in March 2024. The $7,500 federal EV tax credit is gone. Legacy automakers stopped buying regulatory credits from companies like Rivian, effectively ending the flow of money that was ostensibly pouring into their coffers for free. President Trump’s chaotic tariffs have increased the cost of parts and materials Rivian uses to make its EVs.

In some ways, Rivian has big challenges to deal with.

Sales of the company’s R1T pickup truck and R1S SUV decreased in 2025. Rivian is about to start building a huge factory in Georgia, where it will produce hundreds of thousands of R2 SUVs (and eventually R3 hatchbacks).

The company also plans to launch a more premium R2 model this year, making it the fastest electric vehicle in U.S. history. Rivian projects sales of 20,000 to 25,000 R2 units by the end of 2026. If successful, only Tesla’s Model Y would reach 20,000 sales faster.

Rivian told TechCrunch that he wants to start with the more expensive performance R2 model “so owners can experience the absolute pinnacle of the new platform first.”

“Debuting in high-spec trims is a common industry practice, setting the stage for the entire lineup by demonstrating the exceptional capability and acceleration that makes Rivian unmistakable. Production will then expand to premium and standard configurations,” the company said.

Rivian plans to offer a “standard” R2 in the first half of 2027 with a range of up to 345 miles, starting at $48,490. The true base model only has about 400 miles on it. This could be a sign that Rivian is hitting the base model price point. Typically, the fewer batteries you have, the lower the cost. The base model’s low range could serve a dual purpose by encouraging customers to pay up to several thousand dollars more for apparently superior range.

Rivian told TechCrunch that the two standard models share the same rear-wheel drive propulsion, but declined to say whether there are any differences other than battery capacity that could explain the price difference. He also declined to comment on his upsell strategy.

“We have made significant internal engineering, development and business efforts to achieve our target price. We have eliminated complexity by moving to a zoned electrical architecture, reducing the number of electronic control units and utilizing in-house drive units,” the company said in a statement. Rivian also said it applied lessons learned from how it reduced costs and leveraged better supplier relationships on its second-generation R1 cars.

All of this comes just months after Rivian agreed to pay $250 million to settle a class action shareholder lawsuit centered on how the company abruptly increased the price of its R1 cars in 2021.

This is also a mild echo of the controversy that Tesla entered a few years ago. Elon Musk and his company have been promising for years that the Model 3 would cost $35,000. But Tesla only offered the $35,000 Model 3 “off-menu” for a short period of time, and that plan didn’t last long. Many customers who wanted to buy it were pressured into buying higher-trim versions of the sedan, while Mr. Musk complained publicly about how difficult it was to deliver on promises.

Another Tesla car was once announced at an attractive price, but it never materialized. It’s a Cybertruck. Tesla first touted the steel pickup truck in 2019 with prices starting at just $40,000. However, it was eventually launched at a much higher price, which, combined with its overall unpleasant design, resulted in very modest sales.

It seems unlikely that the R2 will break down as much as Tesla’s Cybertruck. After all, it’s a much more approachable vehicle, much less expensive, and without all the political costs of having Elon Musk as CEO. But only the next few years will tell whether the R2’s base model will be similar to the $35,000 Model 3 and Cybertruck, or something entirely different.