Rivian gears up for a busy year with the new R2

During the latest investor call, Rivian shared its plans for the next two years. The automaker had a busy 2025, which it called a "foundational year," and 2026 is seen as a major turning point. The big news is the launch of the Rivian R2, a smaller and more affordable SUV that the company hopes will win over many new drivers.

Rivian is planning to deliver between 62,000 and 67,000 electric cars in 2026 in total. This is a huge jump - about 50% more than what they sold in 2025. The company still expects to lose between $1.8 billion and $2.1 billion next year, and it is spending around $2 billion on new equipment and technology to make the business stronger.

The R2 is the star of the show for Rivian. This midsize SUV is designed to be simpler and cheaper to build than the current models. Rivian says the R2 will start at about $45,000. For comparison, their larger R1S SUV and R1T pickup truck usually cost more than $70,000. The R2 is also smaller - it measures about 185.6 inches long, which is about 15.2 inches shorter than the big R1S.

The company plans to start building the R2 at its factory in Normal, Illinois, during the second quarter of 2026. At first, only one work shift will run to make the cars, but the hope is to add a second shift by the end of the year. Rivian's boss, RJ Scaringe, believes the R2 will become their best-selling model by the end of 2027.

Even though Rivian is still growing, it hit some important goals recently. For the first time ever, the company made a "gross profit" for the whole year of 2025 - it made $144 million more from selling its products than it spent on building them, before counting other big company expenses. A big part of this success came from a partnership with Volkswagen, where Rivian shares its smart car software.

The road ahead isn't perfectly smooth yet. Rivian's total net loss in 2025 was $3.6 billion. That is a lot of money, but it is actually better than the $4.75 billion it lost in 2024. The company has about $6.6 billion in total cash and funding left to help it finish the R2 and keep the lights on.

The EV market is changing quickly. Many people love the high-end R1 models, but sales of expensive electric cars have slowed down, making the $45,000 R2 very important. Rivian hopes it can compete with the Tesla Model Y, which is currently the most popular electric car in the country.

Rivian is also dealing with changes in government rules. Last year, the company made less money from selling "green credits" because the government changed rules about fuel economy. To stay successful, the company needs to make sure the R2 is easy to build and that people really want to buy it.

If you are waiting to hear more about the R2, mark your calendar for March 12. Rivian says it will reveal more details then, including the final prices and different options you can choose. The company also shared that the first R2 models will likely be a "Launch Edition" with two motors and all-wheel drive, which usually means they will be a bit more expensive than the base model.

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