Rivian’s new electric vehicle is slated for 2026. How it could rival Tesla’s best-selling SUV

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Rivian’s new electric vehicle is slated for 2026. How it could rival Tesla’s best-selling SUV

Rivian (NASDAQ: RIVN) is one of the few American car manufacturers aside from Tesla that exclusively produces EVs. The company, led by CEO RJ Scaringe, had one of the

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in recent history, with shares rising as much as 53% in its Nasdaq debut.

The R1T electric full-size pickup truck and R1S full-size electric SUV have impressive specs, but high sticker prices make them unattainable for many drivers. A new Rivian R1T or R1S costs nearly $70,000, which is much more than the

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of $49,740, according to Kelley Blue Book.

Rivian’s new affordable EV could have a better chance at besting the Tesla Model Y (

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). Here’s why.

The Rivian R2 is an upcoming midsize electric SUV that is more affordable and compact than the R1S. The Rivian R1S full-size electric SUV showcased what the company is capable of from a design and engineering standpoint. Now, the R2 can help the Rivian brand become accessible to more American drivers.

The upcoming

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will include many of the same tech features and capabilities that earned the admiration of auto enthusiasts.

Tesla originally manufactured high-priced performance luxury electric vehicles like the Tesla Roadster. The more affordable Model Y and Model 3 EVs went on to become

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, as reported by Hagerty. Will the R2 have the same effect for Rivian as a more affordable alternative to its first models?

According to Rivian, the R2 midsize electric SUV will start at around $45,000. It is

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for the full $7,500 federal electric vehicle tax incentive, bringing its starting price closer to $37,500. You can reserve an R2 electric SUV for just $100.

The R3 is “designed with even tighter dimensions and at a lower price point than R2” says Rivian. The American automaker says that models equipped with larger battery packs are capable of over 300 miles of driving range. Rivian’s current least powerful battery pack provides 270 miles of driving range, but the standard R2 could have less range as a smaller model.

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are open but deliveries on the R2 aren’t expected to begin until the first half of 2026. So, the market won’t see the impact of the R2’s arrival until the second half of 2026. That said, anti-Tesla sentiment has been growing due to CEO Elon Musk’s involvement with the Trump administration as senior advisor to the president.

Prices for the Rivian R2 electric SUV will start at $45,000 in mid-2026.

Tesla sales have experienced a huge international decline, leaving room for competitors to gain momentum. If the Rivian R2 manages to launch without a hitch, it could be a serious rival to the Tesla Model Y in pricing, standard technology, and performance.

This article originally appeared on USA TODAY:

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#Rivians #electric #vehicle #slated #rival #Teslas #bestselling #SUV

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