Tesla Rival's Hopes Rest on Its New SUV

Rivian's long-awaited "affordable" SUV is landing with a thud in at least one key area: the monthly bill. As the first R2s roll out, advertised leases starting around $829—and running into four figures, per Rivian's site—are prompting some reservation holders to walk away, saying the price is too close to Rivian's upscale R1 models, the Wall Street Journal reports. Yet Rivian is hoping the R2 will be its "moneymaker" vehicle—the key to turning a niche EV maker into a mass-market player that can finally turn a profit.

The timing is rough: a federal $7,500 tax credit for leased EVs disappeared last year, helping push typical EV lease costs higher and shrinking the lease share of EV sales. Rivian says demand is strong and about half of early R2 customers are leasing, on par with company expectations. The $58,000 vehicle is also getting positive reviews, with the Journal reporting it "boasts performance typically seen in much more expensive cars" and Motor Trend finding it "difficult to fault." Still, some would-be buyers say they'll wait for cheaper models. A version under $50,000 is expected in 2027, with a $45,000 bare-bones version to follow some time later, per TechCrunch.