- Rivian doesn’t plan to change the R2 crossover’s starting price of $45,000 in response to tariffs.
- Rivian’s CEO sees a challenging tariff environment, but says that starting price is “important for us.”
- The R2 is still on track to start production in Illinois in the first half of 2026.
Rivian doesn’t expect to change the upcoming R2 crossover’s starting price due to tariffs, the startup’s founder and CEO RJ Scaringe said on a Tuesday earnings call.
“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,” Scaringe said. “This is important for us, and there’s a number of variables that we are actively working on.”
Photo by: InsideEVs
Rivian on Tuesday reaffirmed plans to start production of the R2 at its Normal, Illinois, plant in the first half of 2026. The mass-market crossover should bring Rivian far more scale and revenue than its current, relatively expensive lineup does.
Scaringe said that in the first quarter, Rivian’s average selling price (ASP) landed at around $88,500. That includes the R1T pickup, R1S SUV and its commercial van.
“So we have a very high ASP, which is a great thing on our flagship product. But by virtue of that, the size of that market is just more limited,” he said.
President Donald Trump slapped 25% tariffs on auto parts on May 3, in a move that’s expected to raise input costs and vehicle prices across the auto industry. He also raised tariffs on an array of goods from China.
Scaringe said Rivian has ample lead time to strategize around the new policies ahead of the start of R2 production.
One decision that should help it skirt tariffs: sourcing batteries in the U.S. The R2 will initially use South Korea-made batteries from LG Energy Solution. In 2027, Scaringe said, it’ll begin sourcing those same LGES batteries from Arizona.
This story is developing. Check back for updates.
