Rivian is preparing to move beyond its premium-priced electric vehicles, with CEO RJ Scaringe confirming that the upcoming R3 will be priced “materially lower” than the recently launched R2. The company also plans to follow the R3 with an even cheaper R4, potentially expanding Rivian’s reach into a much larger portion of the EV market.
Rivian R3 Will Be Cheaper Than the R2
Rivian’s R1S electric SUV and R1T electric pickup are known for strong performance, long-range estimates and off-road capability, but pricing has not traditionally been considered one of their strongest selling points.
That could begin to change with Rivian’s next generation of vehicles. In an interview with The New York Times, Scaringe said the company’s upcoming R3 will cost “materially lower” than the R2, while a cheaper R4 will follow.
The R3 will be a high-riding hatchback and will also be offered in a rugged R3X variant. Rivian has previously discussed R5 and R6 models as well, although Scaringe has not indicated where those vehicles would fit within the company’s pricing hierarchy.
R3 and R4 Launch Timing Remains Unclear
Rivian has not provided a definitive timeline for all of its upcoming models. The company’s plant under construction in Stanton Springs, Georgia, is scheduled to begin R2 production around late 2028, with the R3 expected to join it shortly afterward, potentially in 2029.
The R2 vehicles currently being delivered to customers are built at Rivian’s existing plant in Normal, Illinois, alongside the R1.
Based on the planned production timing, the R4 and any additional models would not be expected to arrive until sometime next decade.
Rivian Could Target the $35,000 EV Market
The R2’s base price starts at $44,990, with the model due next summer. Based on that pricing, the R3 is expected to start at around $35,000, putting it directly in contention with the Tesla Model 3, which is currently priced from $36,990.
Tesla CEO Elon Musk has frequently discussed a $25,000 EV, but Tesla remains quiet on such a model today and says it is instead focused on other projects, including its Cybercab robotaxi.
If Rivian positions the R4 below the R3, its price could fall to $30,000 or less.
How Rivian Plans to Lower EV Costs
Rivian has already demonstrated how it can reduce production costs with the R2. The company achieved a 50% reduction in bill-of-material costs compared with the R1 through a redesigned electrical architecture and simplified manufacturing.
Similar strategies are expected to be used for future models, particularly the R4. The vehicle is expected to use a new Affordable Mass Market Platform that Rivian outlined in a 2024 investor presentation.
The R3, meanwhile, will share the current Midsize Platform with the R2.
Why Lower-Cost EVs Matter for Rivian
The Trump Administration’s removal of the $7,500 federal tax credit scheme for new electric vehicles made EVs significantly less attainable overnight. Interested buyers rushed to purchase new EVs before the policy took effect, while sales of electrified models fell afterward.
Automakers have been attempting to make existing EVs as competitive as possible on price, in some cases absorbing lower profits. However, new EV sales remain down.
Rivian has also felt the pressure. The company’s sales in 2025 dropped 18% compared with 2024, while tariff costs have added another consideration.
For Rivian, bringing more affordable EVs to market could expand the pool of potential customers. A Rivian priced below $40,000, or even below $30,000, could target the mass market and compete for sales with companies such as Toyota and Honda, which primarily sell value-focused hybridized models instead of full EVs.
With the R3 planned below the R2 and a cheaper R4 expected afterward, Rivian is preparing a broader lineup aimed at bringing its electric vehicles to more price-sensitive buyers.
