Will the Rivian R2 electric SUV be able to become the foundational vehicle for the electric vehicle brand, or will sales continue to decline?

It shouldn’t come as any surprise that Rivian experienced a sales decline in 2025. With the EV tax credit ending and the brand lacking anything that resembled affordable electric vehicles under $50k, many consumers looked elsewhere for EVs, if they even chose an EV to drive. The Rivian R1S and R1T deliveries were dismal compared to previous months, but that hasn’t caused Rivian to throw in the proverbial towel and leave the market. Instead, they are doubling down on the R2 platform and what it could mean for the future.

The biggest hit shows serious Rivian sales decline at the end of 2025

Rivian wrapped up 2025 with nearly 10,000 fewer deliveries than the year before. Fourth quarter sales took the biggest hit when the federal EV tax credit disappeared in September. The company is banking everything on the more affordable R2 SUV launching this year to bring buyers back, while competitors are pulling away from electric vehicles entirely. Can a $45,000 SUV reverse the slide and prove that Rivian can compete without government incentives?

Will the Rivian R2 electric SUV bring buyers to the brand?

From the start of the EV revolution, affordability has been one of the most difficult hurdles for automakers to get over. Many automakers have begun to rethink their EV investments, creating a world with less electric vehicle market competition from legacy automakers for brands like Rivian and Tesla. These brands still must compete against some of the biggest names in China, namely BYD, which has become one of the top brands worldwide in the EV market.

The new R2 is expected to reach the market at a much more affordable price than the R1 platform. This could change the market dramatically and entice many drivers, who would see gas or hybrid SUVs that cost the same, toward the Rivian EV over some of the other brands. Drivers can enjoy the benefits of at-home charging with a properly installed Level 2 charging system, but that might not be enough to entice drivers to choose the R2.

This platform is the foundation of Rivian’s autonomous driving future

The new R2 platform is being used to test, develop, and eventually utilize the Rivian autonomous driving technology, which should be the future of driving. The company began making its own computer chips, leaving Nvidia behind, and seems extremely excited by the prospect of producing the first self-driving vehicles for consumers. Rivian is bypassing the robotaxi market altogether to bring more driving technology to the masses. Currently, their hands-free highway driving system includes millions of miles of mapped highways in the United States and Canada.

In addition to the self-driving tech, Rivian now has access to Volkswagen Group’s electrical architecture, which makes it much easier for them to build batteries in-house, ensuring lower prices for Rivian vehicles going forward.

Should the Rivian R2 electric SUV become a worldwide EV?

Unlike Tesla and BYD, Rivian only operates in the United States and Canada. This limited market could be a huge factor in the success or downfall of the company. Expanding to other markets could be key to Rivian’s success, but breaking in against other EV giants might be too big a hill to climb at the moment. While it would certainly make sense for Rivian to expand into other markets, they should probably wait to see if the R2 platform is going to be the success they need it to be.

When is the R2 expected to arrive?

The new R2 should begin during the first half of this year, which means it can’t get here soon enough. While the R1S and R1T are certainly admirable and impressive EVs, they are much too expensive for most consumers, causing Rivian to be stuck for more affordable options. If the R2 is successful, it could be a strong future for the company, but if not, the end of Rivian might be much sooner than anyone could anticipate.

The new Rivan R2 electric SUV is priced right and has the most advanced tech offered by the company. This new SUV might be the catalyst to finally allow the startup EV brand to be successful. In addition to being priced right, the R2 brings the future of driving to the market, including new Rivian autonomous technology, which could eventually be developed into full self-driving experiences for owners.

Will you be one of the drivers of the new R2 SUV?