Key Points
Rivian (NASDAQ: RIVN), the high-end EV maker that went public in late 2021, currently sells three vehicles: the R1T pickup, the R1S SUV, and electric delivery vans (EDVs) for Amazon (NASDAQ: AMZN) and other companies. But on March 12, Rivian will finally reveal its next vehicle, the R2 SUV, during the SXSW 2026 Festival in Austin, Texas. Let’s see why the R2 is so important to Rivian’s future — and why it could be smart to buy its stock before the big event.
What does the R2’s launch mean for Rivian?
Rivian has struggled to ramp up its production since its public debut. It doubled its production from 24,337 vehicles in 2022 to 57,232 vehicles in 2023, but that figure dropped to 49,476 in 2024 and to 42,284 in 2025. It also remains deeply unprofitable.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Image source: Rivian.
Rivian blamed those declines on supply chain constraints, lower EV subsidies, higher interest rates, and intense competition in the premium EV market. To reach a broader market, it plans to launch the R2 at about $45,000 — roughly $30,000-$40,000 less than the R1T and R1S.
The R2’s lower price tag also won’t crush its gross margins, since it’s much cheaper to build than the R1T and R1S — thanks to fewer electronic control units (ECUs) and overall parts, an improved battery pack design, simpler wiring, and larger castings.
That streamlined design will make the R2 easier to scale than its other vehicles. To support that expansion, it plans to open its Georgia plant (to share the load from its main Illinois plant) and triple its total production capacity by 2028. If Rivian successfully ramps up production and sales of the R2, it could boost brand awareness and lay a firmer foundation for its higher-end R3 SUVs — which should arrive in late 2026 or early 2027.
Why should you buy Rivian’s stock today?
At $15 per share, Rivian’s stock trades more than 80% below its IPO price and is valued at less than three times this year’s sales. But if it successfully expands its addressable market with R2 and launches additional vehicles, analysts expect its revenue to more than triple from $5.4 billion in 2025 to $16.3 billion by 2028. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive by the final year.
See also <!DOCTYPE html><html><head> <title>The Disparity in Tax Burdens Across American States</title></head><body><h2>Exploring Tax Rates vs Tax Burdens</h2><p>Understanding how income taxes are computed remains a complex puzzle for many Americans unversed in the nuances of tax laws and terminology. Terms like tax rate and tax burden can often be baffling.</p><p>A tax rate signifies the percentage at which an individual or business is levied, with considerable variations based on income levels. On the other hand, tax burden represents the total sum of taxes paid, encompassing state and local taxes. This distinction assumes a pronounced importance when contrasting the wealthiest and poorest 20% in every state.</p><h2>Research Methodology Breakdown</h2><p>To discern the disparities in tax burdens nationwide, GOBankingRates delved into state, federal, and local data to unravel the tax burdens of affluent and impoverished individuals for single filers and married joint filers in each state. Harnessing data from the U.S. Census Consumer Expenditure Survey and the Bureau of Labor Statistics Consumer Expenditure Survey, this comprehensive analysis employed an in-house income tax calculator to ascertain the effective and marginal tax rates on average incomes for both demographic segments in every state.</p><p>The study additionally scrutinized the annual expenditures in each state, multiplying them by the average combined sales tax to compute the total sales tax expenditure for each state. The cumulative sum expended on federal and state income taxes was added to the aggregate spent on sales tax and then divided by the average income. Notably, property tax was excluded from the analysis due to data inconsistencies.</p><h2>Implications of Tax Disparity</h2><p>The wealthiest 20% invariably bear a more substantial tax burden; however, despite this higher tax load, these individuals command significantly more wealth than the poorest quintile. Thus, each tax dollar exacts a heavier toll on the poorest 20%. For instance, in a scenario where a state's tax burden for single filers stands at 27.50%, this does not signify that the wealthiest 20% pay 27.50% more than the poorest quintile. Instead, it signifies that they contribute 27.50% more of their personal income compared to the poorest 20%.</p><h2>State-Specific Tax Burdens for Different Income Strata</h2><h3>Alabama</h3><ul> <li> <strong>Single Filing for Richest 20%</strong>: <ul> <li><strong>Average Annual Income of Richest 20%</strong>: $213,012</li> <li><strong>Total Taxes Paid</strong>: $69,320</li> <li><strong>Tax Burden</strong>: 32.54%</li> </ul> </li> <li> <strong>Single Filing for Poorest 20%</strong>: <ul> <li><strong>Average Annual Income of Poorest 20%</strong>: $11,401</li> <li><strong>Total Taxes Paid</strong>: $1,252</li> <li><strong>Tax Burden</strong>: 10.98%</li> </ul> </li></ul><p>Difference in Tax Burden: 21.56%</p><ul> <li> <strong>Married Filing Jointly for Richest 20%</strong>: <ul> <li><strong>Average Annual Income of Richest 20%</strong>: $213,012</li> <li><strong>Total Taxes Paid</strong>: $57,825</li> <li><strong>Tax Burden</strong>: 27.15%</li> </ul> </li> <li> <strong>Married Filing Jointly for Poorest 20%</strong>: <ul> <li><strong>Average Annual Income of Poorest 20%</strong>: $11,401</li> <li><strong>Total Taxes Paid</strong>: $968</li> <li><strong>Tax Burden</strong>: 8.49%</li> </ul> </li></ul><p>Difference in Tax Burden: 18.65%</p><h3>Alaska</h3><ul> <li> <strong>Single Filing for Richest 20%</strong>: <ul> <li><strong>Average Annual Income of Richest 20%</strong>: $254,899</li> <li><strong>Total Taxes Paid</strong>: $75,761</li> <li><strong>Tax Burden</strong>: 29.72%</li> </ul> </li> <li> <strong>Single Filing for Poorest 20%</strong>: <ul> <li><strong>Average Annual Income of Poorest 20%</strong>: $20,172</li> <li><strong>Total Taxes Paid</strong>: $2,175</li> <li><strong>Tax Burden</strong>: 10.78%</li> </ul> </li></ul><p><strong>Difference in Tax Burden:</strong> 18.94%</p><ul> <li> <strong>Married Filing Jointly for Richest 20%</strong>: <ul> <li><strong>Average Annual Income of Richest 20%</strong>: $254,899</li> <li><strong>Total Taxes Paid</strong>: $60,828</li> <li><strong>Tax Burden</strong>: 23.86%</li> </ul> </li> <li> <strong>Married Filing Jointly for Poorest 20%</strong>: <ul> <li><strong>Average Annual Income of Poorest 20%</strong>: $20,172</li> <li><strong>Total Taxes Paid</strong>: $1,543</li> <li><strong>Tax Burden</strong>: 7.65%</li> </ul> </li></ul><p><strong>Difference in Tax Burden:</strong> 16.21%</p></body></html><html><head> <title>Analysis of State Tax Burden Disparities</title></head><body> The Great Divide: State Tax Burden Disparity Revealed
In other words, Rivian’s R2 launch could be comparable to Tesla‘s (NASDAQ: TSLA) initial introduction of its more affordable Model 3 ten years ago. Considering that Tesla’s stock rallied more than 2,800% over the past decade, it might be smart to nibble on Rivian’s unloved stock before it attracts a lot more attention.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 6, 2026.
Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
