Rivian CEO calls $48K the sweet spot for EV prices, says R2 will rival Tesla’s Model Y
Rivian looks to expand the brand with its more affordable R2 electric SUV. Ahead of the R2’s official debut, Rivian’s CEO RJ Scaringe called $48,000 an “important sweet spot” for buyers switching from gas vehicles. Scaringe also said the upcoming R2 will compete in the same market as Tesla’s best-selling Model Y.
Rivian CEO calls $48K the sweet spot as R2 launch looms
In a new interview with Forbes, Scaringe explained Rivian’s ambitions of going mass market. “The average transaction price of a vehicle, any vehicle in the United States, is around $48,000.”
Scaringe explained, “We think that’s a really important sweet spot, to be in that range, to create a viable option for customers that are coming out of combustion-powered vehicles.”
Being competitive on cost is becoming increasingly essential as price cuts from leaders like Tesla are pressuring others to follow suit. Earlier today, Ford announced it was cutting the price of the Mustang Mach-E and introducing new incentives for the Lightning electric pickup.
Rivian introduced new Standard battery pack options for the R1T and R1S earlier this month, dropping the starting prices to $70,000 and $75,000, respectively.
According to Cox Automotive data, the average price of an EV at the end of 2023 was $50,798. That’s within $2,040 of the average gas-powered vehicle at $48,795. Tesla was even closer at an average transaction price of $50,051.
R2 will “greatly expand” the brand
Rivian’s CEO said more unique EVs are needed. “Products available in the market today cover a very small subset of the segments,” both in price and form.
Scaringe chalked up the reported “slow down” in EV demand as “more a reflection of a lack of product choice.” Despite confirming that R2 will be smaller than the R1S and will meet the battery requirements for the $7,500 EV tax credit, Scaringe did not offer any new details.
Rivian’s CEO said R2 will capture “the essence of what makes a Rivian a Rivian” in a smaller, more affordable package.
According to Scaringe, R2 will compete in the same segment as Tesla’s top-selling Model Y. Leading up to its official debut, Rivian gave us our first look at the R2 in a new teaser video.
Shortly after, the R2 was reportedly spotted filming in downtown LA. The images show what appears to be a smaller electric SUV sitting next to the R1S, aligning with previous findings.
A patent filed by Rivian last month revealed a more compact electric SUV with slightly smaller headlights and rear quarter panels.
Scaringe said the R1 vehicles introduced Rivian to the world, but “R2 greatly expands the relevance of Rivian to a much broader set of consumers.” Rivian’s CEO said he’s “never been as excited” about a project as he is for R2.
R2 will be built at Rivian’s second manufacturing plant in Georgia. It will be a smaller, more affordable electric SUV with starting prices around $45,000.
Rivian will officially reveal the new R2 at its new Laguna showroom on March 7, 2024, at 10 am PST. You can check back here for the full details.
Electrek’s Take
Rivian’s R2 comes at a key time as the EV maker looks to take the brand mainstream. The R1S and R1T were designed as flagship products to put Rivian on the map and generate some cash flow.
Now, R2 is set to expand the brand. Rivian has already established itself as a luxury EV maker. Now, the R2 will help unlock an entirely new segment of buyers.
Ed Kim, president of industry consultant AutoPacific, said the R2 is happening at a good time as EVs are reaching mainstream customers. Kim explained as “EVs are becoming more relevant to mainstream consumers, here comes this much more mainstream-priced R2 that’s a lot more attainable and affordable.”
Although Scaringe said R2 will rival Tesla’s Model Y, it will likely take share from gas-powered vehicles like the Ford Bronco, Subaru Forester, Chevy Traverse, and Jeep Compass.
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Environment
Communication is now even more important to getting renewable projects off the ground, experts say
(From left) CNBC’s Steve Sedgwick moderates an IoT panel with Cenk Alper, CEO of Sabanci Holding, Christina Shim, chief sustainability officer of IBM, and Mitesh Patel, interim CEO and COO of SunCable International, at CONVERGE LIVE on March 13, 2025.
Renewable energy companies can shorten the long approval process needed for their projects by communicating better with stakeholders, according to experts.
Christina Shim, IBM’s chief sustainability officer, said sponsors need to focus on the business value — in addition to the environmental benefits — when discussing their projects.
“That being said … there are some triggering words now, depending on where you sit around the world, and I think the more that you can quantify business value for what you’re doing and tie it to, again, the business operations and business decision making, it’s only going to be more and more important,” Shim said Thursday.
“As long as the outcomes are the same, you just need to make sure that you’re communicating in an appropriate way with the right stakeholders.”
She compared it to how one might talk to a CFO, versus an investor, versus someone in procurement. “You kind of have to talk about things a little bit differently.”
Mitesh Patel, interim CEO and COO at SunCable International, agrees that adjusting communication for the right audience is crucial.
“For politicians, the voters are their constituency, not your project or not your company. You have to help them translate what benefits your project will bring to the constituents,” said Patel, whose company is developing a project to deliver solar energy from Australia to Singapore via undersea cables.
The project, called Australia-Asia PowerLink, is valued around $24 billion and expected to supply Singapore with 1.75 gigawatts of electricity — or around 15% of its electricity needs, according to the company.
The comments by Shim and Patel, who were speaking to CNBC’s Steve Sedgwick on a panel in Singapore, come as renewable energy projects often take many years to get off the ground.
A report from the Global Infrastructure hub, which is part of the World Bank’s Public-Private Infrastructure Advisory Facility, noted the complex nature of preparation needed before an infrastructure project gets underway. It put the average project preparation time at 6 years but said it can take up to 14 years if the project is not planned properly.
Cenk Alper, CEO of Sabanci Holding, a Turkish conglomerate, said the biggest obstacle to getting renewable energy projects off the ground is often regulatory.
“The biggest problem is still government — the permits. Because from licensing to making a project ready, the total time is longer than the construction time,” he said.
The situation in Europe is worse, he added, citing a project where connecting to the grid took two years.
Alper said Western countries need to streamline the approval process for renewable energy projects, noting China has embarked on more projects in the last five years than the rest of the world combined.
A new study from the REPEAT Project led by Princeton University’s ZERO Lab warns that the repeal of Inflation Reduction Act (IRA) tax credits could decimate the growing EV manufacturing sector.
The report “Potential Impacts of Electric Vehicle Tax Credit Repeal on US Vehicle Market and Manufacturing” clearly outlines the risks. The Princeton study states that repealing the IRA federal tax credits and the EPA’s clean vehicle regulations would sharply reduce EV demand.
Specifically, EV sales could drop around 30% by 2027 and nearly 40% by 2030 compared to sticking with the policies implemented by the Biden administration. That means the share of EVs among new cars sold would shrink dramatically – from about 18% to 13% by 2026 and from 40% to just 24% by 2030.
“While no one has a perfect crystal ball, this is our best attempt to survey available quantitative forecasts and develop an outlook on US EV sales,” explained the study’s project leader, Jesse D. Jenkins, assistant professor at Princeton’s Department of Mechanical & Aerospace Engineering and Andlinger Center for Energy & Environment in an email. “The report is also the only analysis I’m aware of to date that draws the connection to US manufacturing as well.”
Here’s why this matters: The report points out that repealing these policies wouldn’t just slow down EV adoption – it could seriously derail the US manufacturing renaissance now underway. Up to 100% of planned expansions for EV assembly plants could be canceled or shuttered. Battery manufacturing would also take a huge hit, with between 29% and 72% of battery cell production capacity becoming redundant by 2025. That means factories under construction or those just coming online would be at risk.
To put that into perspective, an Environmental Defense Fund report released in January found that $197.6 billion worth of investments in EV and battery manufacturing have been announced at 208 facilities around the US, with two-thirds announced since the passage of the Inflation Reduction Act in August 2022.
It’s probably a good time to point out that, in order to qualify for IRA federal tax credits, EVs must be domestically assembled, use battery components that have been substantially domestically produced, and use critical minerals produced, processed, or recycled in North America or free trade agreement countries.
Why, then, is the Trump administration torpedoing an industry that’s achieving the very thing it says it wants to achieve, which is to boost domestic manufacturing and jobs?
And let’s not forget the broader EV supply chain – materials, parts, and component suppliers across the country would also suffer, though these effects haven’t even been fully quantified yet.
Bottom line: Repealing the tax credits and regulations wouldn’t just slow down EV sales – it would threaten the jobs, investments, and communities counting on America’s EV manufacturing boom.
Read more: Republican districts lose billions as clean energy cancellations surge
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The Optiq, Cadillac’s most affordable EV, just got a price cut. Despite being on the market for less than two months, GM cut lease prices by nearly $100 a month. Here’s how you can snag the deal.
GM cuts lease prices on Cadillac’s most affordable EV
Compared to Cadillac’s other electric vehicles, like the Escalade IQL, which starts at over $130,000, and the Vistiq, which has a price tag of over $77,000, the Optiq already looks like a steal at about $55,000.
Cadillac’s electric SUV arrived in January with lease prices starting at $489 per month. Although this was already its cheapest SUV (gas or EV), GM is making it even more affordable this month.
The 2025 Cadillac Lyriq is now listed at just $399 for 24 months with $4,929 due at signing. In less than two months, the OPTIQ’s lease prices have fallen by $90, or almost 20%. The deal is for the 2025 Cadillac Optiq AWD Luxury 1 with an MSRP of $54,390.
Cadillac’s lease deal runs through March 31. However, there are a few limitations you should know about. The deal includes a $2,000 loyalty or conquest offer.
The fine print states you must be a lessee of a 2020 model year or newer non-GM vehicle for at least 30 days. According to online car research firm CarsDirect, this extends to 2011 and newer electric vehicles from a competitor brands such as Tesla, Rivian, Porsche, BMW, Ford, and Honda, among several others.
At 190″ long, 75″ wide, and 65″ tall, the Cadillac Optiq is about the same size as the Tesla Model Y (187″ long x 76″ wide x 64″ tall).
Powered by an 85 kWh battery pack, the electric SUV has a driving range of up to 302 miles. With 150 kW DC fast charging, the Optiq can gain up to 79 miles of range in about 10 minutes.
| 2025 Cadillac Optiq trim | Starting Price (including destination) |
Driving Range (EPA-estimated) |
| Luxury 1 | $54,390 | 302 miles |
| Luxury 2 | $56,590 | 302 miles |
| Sport 1 | $54,990 | 302 miles |
| Sport 2 | $57,090 | 302 miles |
Inside, the Optiq features a massive 33″ infotainment and “segment-leading” cargo (57 cubic feet) and second-row space.
GM has been introducing new deals on new EV models all year. Chevy’s new Equinox, Blazer, and Silverado EVs are all available with 0% APR with leases starting as low as $299 per month.
Ready to take advantage of the savings? We can help you get started. Check out our links below to find deals on GM’s most popular EVs in your area.
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