Buyers compared the R2 unfavorably to Tesla's Model Y and Rivian's own R1S.
- The R2 is key to Rivian's growth strategy, but its first lease estimates sparked criticism from prospective buyers.
- A 36-month R2 Performance AWD lease starts at $829 per month, while some configurations can exceed $1,000 monthly payments.
- Several features available on R1 vehicles won't be available in R2, including Rivian Assistant, Pet Mode, Climate Hold, YouTube integration and Camp Mode.
Shares of Rivian Automotive, Inc. (RIVN) slid 1% overnight heading into Wednesday after the EV maker officially opened R2 ordering and began public customer deliveries, with early buyers raising concerns over lease costs, financing terms and software features missing at launch.
RIVN stock slumped 7% on Tuesday, with shares on a downward trend after logging a record streak last week in anticipation of the R2 launch.
RIVN R2 Lease Costs Spark Buyer Backlash
Rivian opened R2 orders on Tuesday and began customer deliveries of the midsize SUV, which is key to the EV maker's plans to broaden its customer base and hit profitability. The company also revealed the first lease and financing terms for R2.
A 36-month lease on the R2 Performance AWD is estimated at $829 per month with $3,500 down, while a 24-month lease rises to $949. With lower down payments, monthly costs can exceed $1,000.
Lease analyst Travis Ketchum calculated an all-in payment of about $988 per month with zero down and estimated an effective lease APR of 9.62%. "With the launch of Rivian R2 'underway' as of this week, we finally have lease and finance numbers," Ketchum said on X. "As expected, the residual is solid but the money factor is... rough." His lease-rating model assigned the deal a score of 43 out of 100, classifying it as "poor."
Buyers also drew comparisons with Tesla's Model Y, which currently carries financing offers as low as 0%-0.99% APR. Others questioned the R2's value proposition relative to Rivian's own lineup, noting that the larger R1S Dual Standard leases for around $899 per month and includes a $3,000 incentive despite carrying a significantly higher sticker price. Some prospective customers said that the narrow lease gap between the R2 and R1 made the smaller SUV a tougher sell, according to EV.
Feature Gaps Cloud RIVN R2 Debut
Early attendees at Rivian's First Drive events also noted that several software features available on current R1 vehicles will not be available when the R2 launches. Among the missing features are Rivian Assistant, Climate Hold, Pet Mode, Google Casting, YouTube integration, SiriusXM and the Camp Mode application. Gear Guard will launch with limited functionality. Rivian has said that the features will arrive through future software updates, but has not provided firm timelines.
When the company unveiled the R2 in March 2024, it promoted the SUV with a headline starting price of $45,000 and positioned it as the vehicle that would make the brand "accessible to so many more people." However, the first version available to order is the R2 Performance Launch Edition priced at $57,990.
The Premium trim is expected later in 2026, while the Standard Long Range variant is scheduled for the first half of 2027. The long-awaited entry-level model carrying the promised $44,990-$45,000 price tag is not expected until summer 2027.
Rivian is targeting 20,000 to 25,000 deliveries in 2026 as part of its overall guidance of 62,000 to 67,000 vehicles. With R1 and commercial van volumes expected to remain largely flat, much of Rivian's growth hinges on a successful R2 ramp.
How Do Retail Traders Feel About RIVN?
On Stocktwits, retail sentiment for RIVN slipped to ‘bullish’ from ‘extremely bullish’ levels a week ago amid a 127% jump in 24-hour message volumes.
One user said, “Merely selling R2s isn't going to be enough. The market wants profitability the likes of which few EV makers can ever flirt with to push this back to hype levels.”
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Another user said, “$RIVN so now we have no near term catalyst left to help with our stock to go up. We will be range bound for forceable future if not then at least next 2 to 3 quarters.”
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RIVN stock has risen 9% over the past year.
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