EV makers may be approaching a “Model 3” moment.
Rivian (NASDAQ:RIVN)is a high-end EV manufacturer that went public in late 2021 and currently sells three vehicles: the R1T pickup, R1S SUV, and electric delivery van (EDV). Amazon (NASDAQ:AMZN) And other companies. But on March 12th, at the SXSW 2026 festival in Austin, Texas, Rivian will finally unveil its next vehicle, the R2 SUV. Let’s take a look at why R2 is so important to Rivian’s future and why it’s wise to buy its stock before the big event.
What does the launch of R2 mean for Rivian?
Rivian has struggled to ramp up production since its public debut. The company’s production doubled from 24,337 units in 2022 to 57,232 units in 2023, but that number decreased to 49,476 units in 2024 and 42,284 units in 2025. It also remains highly unprofitable.
Rivian blamed these declines on supply chain constraints, reduced EV subsidies, rising interest rates, and intense competition in the premium EV market. To reach a broader market, the company plans to launch the R2 for around $45,000, which is roughly $30,000 to $40,000 less than the R1T and R1S.
The R2 also costs much less to manufacture than the R1T and R1S thanks to fewer electronic control units (ECUs) and overall parts, improved battery pack design, simplified wiring, and larger castings, so the lower price doesn’t hurt gross margins.
Its streamlined design makes R2 easier to expand than other vehicles. To support this expansion, the company plans to open a Georgia factory (to off-load from its main Illinois factory) and triple its total production capacity by 2028. If Rivian is successful in increasing production and sales of the R2, it could increase brand awareness and lay a stronger foundation for the R3, a high-end SUV expected to arrive in late 2026 or early 2027.
Why should you buy Rivian stock today?
Rivian’s stock price is $15 a share, more than 80% below its IPO price, and valued at less than three times this year’s sales. However, if the company is successful in expanding the R2’s addressable market and launching additional vehicles, analysts expect the company’s sales to more than triple to $16.3 billion by 2028 from $5.4 billion in 2025. The company also expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive by the final year.
In other words, Rivian’s R2 launch tesla‘s (NASDAQ:TSLA) The more affordable Model 3 was first introduced 10 years ago. Considering Tesla’s stock price has risen more than 2,800% over the past decade, it might be wise to take a bite out of the unpopular Rivian stock before turning heads.
Leo Sun has a position at Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.
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