Rivian’s Cheaper R2 Is Now Outselling Both R1 Models Combined

Rivian’s EV sales are booming with the more affordable R2 now outselling both R1 models combined. With the launch of the R2 SUV, sales at the EV maker are up 46 percent over last year, according to Car and Driver’s reporting highlighted in early November.

The R2 is the car Rivian has been building toward since its founding: a smaller, cheaper SUV aimed at the heart of the market rather than the luxury-adventure niche the R1T pickup and R1S SUV occupy. Its success shows that the demand was always there — it was the price that was holding buyers back.

The sales mix shift matters for Rivian’s finances too. The company still lost $80 million at the gross level last quarter and burned $1.12 billion of free cash flow, but management plans to exit the fourth quarter at an automotive gross profit. Rivian needs positive gross margin to draw on its Department of Energy loan of up to about $4.5 billion.

The real test comes in December, when the fourth-quarter numbers will show whether the R2’s volume can turn into profit. For now, though, the R2 has done what the R1s never could: make Rivian a volume brand.