Rivian Unveils $45,000 R2 SUV in Exclusive CNBC Preview

• Rivian has approximately $7 billion in cash as of January, with analysts expecting $5 billion in cash burn for 2026, partially offset by $2 billion from a Volkswagen software partnership
• The R2 features significant cost reductions through innovative design, including just seven computing units (down from 17 in first-generation R1s) and 2 miles less wiring, while maintaining premium features like dual glove compartments and fully-dropping rear windows
• Analysts project about 15,000 R2 units sold in 2026, though some believe Rivian could exceed this given the R1's top ranking in Consumer Reports' owner satisfaction survey and status as best-selling premium electric SUV in the U.S.

RIVIAN UNVEILS $45,000 R2 SUV AS PATH TO PROFITABILITY

Rivian has given CNBC an exclusive preview of its R2 SUV, a crucial $45,000 electric vehicle designed to drive the company toward profitability. The R2 is set to launch in the first half of 2026, with deliveries to reservation holders beginning in June.

Key Financial Figures:

• Rivian burned through $3 billion in the first three quarters of 2025
• Current cash position: approximately $7 billion as of January
• Expected 2026 cash burn: $5 billion
• VW partnership deal will inject $2 billion in 2026
• Projected 2027 cash reserves: $4 billion

Product Details:

The R2 is a smaller, five-seat version of Rivian's flagship R1S SUV, which starts at nearly $80,000. The new model features enhanced engineering efficiency, reducing computing units from 60 (traditional vehicles) to just seven, while cutting wiring length by 2 miles compared to previous generations. These innovations significantly lower production costs while maintaining performance capabilities.

CEO RJ Scaringe emphasized the vehicle's quick acceleration and adventure-ready features, though it won't match the extreme off-road capability of the $120,000 R1 Quad model.

Market Outlook:

Analysts expect approximately 15,000 R2 units sold in 2026, though Needham analyst Chris Pierce believes the company can exceed this target. Rivian ranks first in Consumer Reports' owner satisfaction survey, providing strong word-of-mouth potential.

Challenges:

The company faces headwinds including the end of EV tax credits, rising hybrid vehicle sales, and investor concerns about cash burn rates. However, the mid-price SUV segment offers significantly larger market potential than Rivian's premium R1 lineup.