Rivian Automotive Inc. said demand for its forthcoming R2 electric SUV has exceeded the company's internal supply-planning assumptions, marking a sharp reversal from the tepid reception that greeted the model's original unveiling in March.
Chip Newcom, Rivian's vice president of investor relations, told attendees at the Goldman Sachs Communacopia + Technology Conference 2026 on Tuesday that early interest in the R2 was "absolutely phenomenal." He said potential buyers who went through the pre-order process were converting quickly into purchase intent.
"When we invite people in, they say, 'OK, I do want to buy the vehicle,'" Newcom said, adding that the volume of deposit-holders now surpasses what the company had originally budgeted for the vehicle's launch window.
Rivian announced the R2 in March 2024 as a lower-priced, two-row SUV positioned to compete with the Tesla Model Y. The initial rollout was expected later in 2026 from the company'sGeorgia manufacturing plant, following a launch sequence that begins with the larger, more expensive R3 model.
On Wednesday, Rivian said its board has authorized a new share offering that could raise up to $4 billion. The company also reiterated its updated forecast that automotive gross profit will turn positive on an exit-rate basis by the fourth quarter of 2026.
Management provided a detailed update on the R2's cost structure. CEO RJ Scaringe said the company is targeting a 50% reduction in bill of materials versus the existing R1T pickup and R1S SUV once R2 production reaches full rate. The vehicle uses a structural battery pack built around 4695-format cells sourced from LG Energy Solution, with supply expected to begin in 2025.
Rivian also confirmed it plans to add a second shift at its Normal, Illinois factory by the end of the third quarter, which the company said would help close the gap between projected R2 volumes and the supply ceiling management had previously outlined.
The company reported that its Uber partnership is generating significant capital inflows. The overall deal is worth $1.25 billion in equity investments across multiple years. A second milestone payment of $250 million is scheduled upon completion of a third-quarter target, with an additional $700 million tied to three subsequent milestones. Under the agreement, Uber has committed to purchasing 10,000 vehicles with an option to increase orders to 40,000 units.
On the autonomy front, management confirmed that its custom-designed RAP1 processor has achieved four times its targeted performance in testing, with hardware characterization expected to wrap up within approximately six weeks. Third-generation hardware is slated for launch in late 2026, supporting features including Universal Hands-Free and Highway Assist. Level 4 autonomous driving for the Uber robotaxi fleet is targeted for 2028, while supervised point-to-point driving is planned for release before the end of 2024.
