California-based Rivian (NASDAQ: RIVN) is having a huge year in 2025 thanks to some revenue momentum and accelerating deliveries. Its stock is up a whopping 94% from its March 13 low of $10.61 a share. The American electric vehicle manufacturer and automotive technology company may be on the precipice of something transformational with the upcoming release of the R2 midsize electric SUV.
Rivian isn’t just riding the EV wave—it’s helping shape it. Founded in Irvine and still deeply tied to the Golden State, Rivian employs more than 2,000 Californians across engineering, design, and service operations.
The company’s CEO RJ Scaringe just gave drivers a glimpse at a the R2’s body shop. Here’s why the production of this new electric vehicle could disrupt the space in a major way.
Rivian CEO displays R2 midsize electric SUV production process on X
Rivian is utilizing an “automated hang-on line,” a production method that allows the company to hang the doors, hood and liftgate onto the frame of the electric vehicle robotically. Scaringe previewed some of the production process exclaiming that the company “can’t wait” to get the vehicles to customers, hinting that the R2’s release is on the horizon.
R2 reservations are available now for $100. Deliveries begin in the first half of 2026. Rivian is expected to deliver “up to 155,000 units annually” once production ramps up, says MotorTrend.
Why is the Rivian R2 so important?
The Rivian R2 is an important model to the company and to the electric vehicle space because it will be the most affordable vehicle from the company thus far. Its size, starting price and performance specs make it a true rival for Tesla, which currently dominates EV sales.
Rivian’s R2 model gives the American automaker a real chance to compete with companies selling more electric vehicles like Hyundai, Ford and Tesla. It’s expected to start at $45,000, according to the company website. The EV will have more than 300 miles of driving range and accelerate from 0-60 miles per hour in just 3.0 seconds. It seats five.
The Rivian R1S and R1T have impressive performance specs but are hardly competitive with the most popular electric vehicles on the market due to starting prices over $72,000. The R2 could easily become the brand’s best-selling nameplate since it’s so much more affordable than its siblings and doesn’t sacrifice range or quickness.
Rivian’s best years could be ahead of it
While electric vehicle producers like Tesla have already made a huge impact on the EV space, there’s still plenty of room for Rivian to make its mark on the industry. The R2 isn’t the only affordable upcoming electric vehicle that the company has in the works.
Rivian is also developing the R3, a compact electric SUV that will share a platform with the R2. The major difference is the smaller model will be more affordable. Additionally, small SUVs like the Toyota RAV4 and Tesla Model Y are wildly popular in America, so the R3 could make a huge splash as well.
Aside from upcoming vehicles, Rivian is also progressing in its hands-free driving technology. It hosts one of the most advanced semi-autonomous driving systems available and is teasing even more advanced hands-free driving tech for the future.
Up to 3.5 million miles of roads in the U.S. and Canada are compatible with Rivian’s semi-autonomous driving tech, according to the company’s website. The Rivian R1T and R1S appear to be just the tip of the iceberg for the American electric vehicle manufacturer and automotive technology company.
California’s EV Surge
California EV Adoption Snapshot (2025), according to state statistics.
This article originally appeared on Palm Springs Desert Sun: Rivian’s R2 SUV California roots drive EV momentum in 2025
Reporting by Charles Singh and James Ward, Palm Springs Desert Sun / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
