2025 Rivian R2 electric car coming soon as the off-road-focused automaker looks to take on Tesla Model Y with its first 'affordable' EV model

Rivian has released a short teaser video with a single direct front-on shot of its next model, the smaller and lower-cost R2.

It's more than just a new model for the electric off-road specialist, as it could be the lifeline it needs to stay afloat as questions have been raised about the sustainability of the brand which can only deliver a limited number of its critically acclaimed R1T ute and R1S SUV in a higher-inflation environment.

This has combined with waning electric-vehicle demand in the US and Europe to make for a nasty outlook for many new electric-focused brands, but Rivian will no doubt be hoping the R2 will put it back front-of-mind with buyers and investors alike and alongside the pedestal on which Tesla is king.

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Smaller, higher volume and more affordable than the R1S (which costs from the equivalent of $114,757 in its US home market), the R2 still promises ‘adventure' as its key selling point, clearly positioning itself as something of an anti-Model Y proposition and living up to the excitement which made the brand's existing two products such hits. The brand has indicated in the past that it wants a roughly AU$61,000 starting price for the R2, although the final price will be key to the model's potential for success.

The news comes after last year's announcement that the brand will build a new plant in Georgia specifically for the production of the R2 with an annual capacity of 400,000 units, although it comes at a cost of nearly five billion US dollars.

Smaller, higher volume and more affordable than the R1S (which costs from the equivalent of 4,757 in its US home market), the R2 still promises ‘adventure’ as its key selling point.

Helping prop Rivian up during this expansion phase is Amazon, which owns a significant share of the automaker as part of its plans to decarbonise its delivery process. As a result, Rivian's third model is a purpose-built electric delivery van for which Amazon has a 100,000-unit order globally.

Rivian's next big move will be an expansion into Europe with its passenger cars, where it already fields a fleet of Amazon delivery vans. Its website is available for Austria, Belgium, The Netherlands, Switzerland, Italy, Germany, Span, France, Italy, and perhaps most significantly for Australia, Great Britain, as it signals an intent to build vehicles in right-hand drive.

Questions have been raised about the sustainability of the brand which can only deliver a limited number of its critically acclaimed R1T ute and R1S SUV in a higher-inflation environment.

Rivian has said in the past that it has plans to expand into Australia eventually, but the timing has been pushed back indefinitely as it struggles to fulfil its order backlog for the R1T and R1S in its home market, while building global capacity for the R2.

It's a space we'll be watching keenly as there is a strong appetite for the brand's adventure-focused range Down Under. Tune in for the reveal of the R2 on March 7th.

Rivian’s third model is a purpose-built electric delivery van for which Amazon has a 100,000-unit order globally.