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The U.S. electric vehicle maker’s make-or-break model, the R2, is finally here — and it’s pretty fun to drive.

The attainable Rivian is here, and not a moment too soon.
It’s been nearly a decade since the U.S.-based startup revealed its prestige R1T pickup truck and R1S SUV, earning plenty of “the next Tesla” hype and becoming lots of people’s favorite electric car brand. But with those R1 vehicles starting around $70,000 — and with nicer versions hitting six digits — lots of would-be drivers have been waiting for R2, the scaled-down vehicle first announced in 2024 and meant to take Rivian to the masses.
Now the moment has arrived: On Tuesday, Rivian began shipping the first version of the R2. I had the privilege of test-driving the vehicle that will make or break the brand last week on the highways and mountain roads outside Park City, Utah. If my experience is any indication, R2 is up to the job of making Rivian mainstream.
“A word we used really heavily throughout the development of R1 was … inviting,” CEO and founder RJ Scaringe said to the journalists at last week’s event. “We use that in the sense of inviting people to use it, inviting people to get it dirty, inviting people to have new experiences and new adventures in it. But by virtue of it being a flagship product, its price wasn't as inviting as we wanted. And so R2 really in many ways is the culmination of the full brand promise.”
First, the facts: R2 looks at first glance like a smooshed version of Rivian’s big SUV, with the same signature headlights and basic shape. It’s a little shorter, a little narrower, and 2,000 pounds lighter than its big cousin, seating five people as opposed to the seven that can cram into R1S. Range from the 88-kilowatt-hour battery is in the high 200 miles and tops 330 miles for some editions.
The stat that matters most is price. The first R2s out of the gate will cost around $58,000, and gradually less expensive tiers will arrive later this year and into next, culminating in the $45,000 base version at a yet-to-be-determined date. No, an EV around 50-grand doesn’t sound like a car for the common man. But as Scaringe noted, that is now the average price for a new car in America, which certainly makes R2 attainable for millions more drivers.
It’s also a lot of car for that money. Thanks to its boxiness, R2 feels like it has loads of room on the inside. Because of an improved battery shape, there’s actually more legroom for the rear passengers compared to R1. Double gloveboxes and a pretty big frunk add to the available storage space. (Rivian even fixed a pet peeve of R1 owners who couldn’t fit their monstrous water bottles in a convenient spot.)
Yet R2 doesn’t drive big. It rides high and offers the driver a wide view, but it’s not a tank like R1, which I found difficult to park in compact spaces like the one at my home. Its 5,000-pound weight is still a lot of heft (a Tesla Model Y is more like 4,000 to 4,400 pounds), but the car still feels zippy. The mass is simply overwhelmed by electric power, especially in the higher-end versions Rivian let us drive in Utah.
As the engineers on site noted, developing the R2 was mostly an exercise in subtraction — not just shrinking the physical size from the R1, but also making R2 cheaper to build by removing miles of wiring (something the brand visualized at the event by showing off bundles of copper in the style of a rubber band ball, representing all that had been cleaved). But R2 needed its own bells and whistles so it would feel desirable on its own and not appear to be merely a discount Rivian.
Those additions include rear windows that go all the way down, unlike the halfway that’s common in most passenger cars; the rear windshield descends, too. A fun button up front marked with a “5” will lower all four passenger windows plus the back windshield at once. In response to complaints about every function running through the center touchscreen, Rivian put in some buttons — or, rather, some wheels. On each side of the steering wheel, reachable by a person’s thumbs, are haptic “halo” buttons that can be pushed side to side or spun. These are not at all the subtle, slight wheels you’d find a Tesla, but rather beefy spinners meant to feel rugged and easy to manipulate.
During testing, I struggled with how hard to push them and in what direction to enter the desired mode that could then be adjusted by spinning the wheel, be it climate, music, drive mode, or the positioning of the side mirrors. But something tells me Rivian will refine the haptic feedback as R2 owners put miles on their vehicles. And even complicated or layered menus become second nature once it’s your own car.
Many of these vehicles will never go off-road, but Rivian still had to prove the R2’s backcountry bona fides. This is the adventure EV brand, after all, and part of the pitch for R2 is how much more it can do than a Tesla Model Y or Chevy Equinox EV. Keen to prove the point, Rivian swapped us halfway through the test drive into R2s with their tire pressure halved to make them mountain-ready, then directed us onto the rutty, boulder-pitted roads of Wasatch Mountain State Park to wade through water crossings and up to the top of a plateau. Here the touchscreen becomes an adventurer’s dream, displaying the vehicle’s moment-by-moment elevation, pitch, compass direction, and much more. Tap into the camera system and it can bring up the close-up view of what’s right in front of the vehicle and shows both front wheels to help navigate around pointy rocks and cavernous ruts.
R2 never wavered or felt as if it had taken on too much. It has all the capability you’d need as a trail warrior, and more than enough for the affluent professional who yearns to become outdoorsy. After so many decades when the world’s truly rugged vehicles were also low-mile-per-gallon polluters, it feels like a breakthrough just getting this much can-do spirit out of an electric car.
More salient for the urban dweller is Rivian’s big push into autonomous driving. As we noted in December after the brand’s AI and Autonomy Day, R2 is the company’s big play in that race: It vastly ups the amount of road open to Rivian’s hand-free autonomous driving feature works, raising it to about 3.5 million miles in the U.S. The company also told us that by the end of the year it would introduce point-to-point service, where the vehicle really can drive itself for the duration of a trip, with more autonomous features potentially on the way. During the test drive, the hands-free tech felt steady and assured on twisty local roads.
Rivian has a long way to go here, given Tesla’s major head start in developing vehicle autonomy. One big asset it does have is the thousands of drivers who’ve bought R1s and who opted to share their driving data with the company, helping it build a dataset that maps and models the world. The less expensive R2 should get many more people into a Rivian vehicle and accelerate that learning curve. That, plus the eventual addition of a LIDAR sensor to some models, will allow that kind of full autonomy that R2 will use when it goes into service as an Uber robotaxi following the ride-sharing company’s $1.2 billion investment earlier this year.
It’s difficult to overstate the importance of this vehicle for Rivian, or for the electrification of the American car. For the brand, this must be its Model 3 moment, where it leaps from a niche brand selling luxe status symbols to one that builds a huge number of EVs — and in the process hopefully becomes financially stable after years in the startup “valley of death,” between promise and profitability. Billion-dollar investments from the likes of Volkswagen and Amazon buoyed Rivian during those years; now R2 has to deliver on them.
As for the U.S. EV market as a whole? It also needs the R2. New EV sales are sagging in America, even amid gasoline price shocks caused by the Iran War. A $50,000 Rivian isn’t exactly the solution to the auto industry’s affordability crisis, but Scaringe argued that U.S. buyers also lack great choices. The industry leaders — Tesla’s Model 3 and Model Y — have been on the market since 2018 and 2020, respectively, with subtle tweaks and update since then. New offerings from legacy carmakers like Chevy and Toyota are a welcome change. Still, they feel like a Chevy or Toyota that’s been electrified, not like a vehicle built from the ground up to deliver on the promise of what a great EV can be.
Yet even now, the learnings from the EV startup world that led to R2 — dramatically simplified manufacturing to bring down costs, advanced touchscreen infotainment with elegant interfaces, EVs built fully integrated from the ground up rather than adapted from existing gas cars — are already influencing the rest of the industry. Just look at what Ford’s skunkworks operation is up to as the Detroit giant tries to catch up in the EV race starting next year. A successful R2 would push the car industry further in this direction.
R2 succeeds in bringing the feeling of a lusted-after EV to the five-seat, fully capable SUV, which has become the de facto family car of this country. And for all of Rivian’s focus on catching up in the AI and autonomy race, R2 still feels like a car you’re supposed to love to drive yourself, whether that’s to work, to grandma’s, or to the top of a mountain. It is, indeed, inviting. With Tesla having publicly abdicated its role of building great EVs for humans to drive, Rivian is now primed to seize the position.
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What are the health risks? How can I protect myself? And will my plants be okay?
If you live anywhere near the Great Lakes or Mid-Atlantic (or certain parts of the Mountain West), odds are it’s smoky where you live. Wildfires raging in western Ontario are sending smoke cascading south and east across the U.S., prompting widespread air quality alerts affecting millions of Americans.
The good and — very bad — news is that we’ve been here before. Here’s a look back at some of Heatmap’s coverage from the summer of 2023, when smoke produced by forest fires in Quebec blanketed 128 million people in a murky haze and turned the New York City skyline an ominous shade of orange.
One day — even just one hour — of smoke inhalation can exacerbate pre-existing health conditions and increase an individual’s chance of premature death by 12%. To stay safe, Jeva Lange recommends avoiding prolonged outdoor exposure and masking up when you go outside.
Wildfire smoke is full of tiny pollutants that can leak into your apartment even when the windows and doors are sealed tight. That’s where air purifiers come in, Matthew Zeitlin writes.
Tinted skies are now a rare, remarkable event. But decades ago, before targeted policy interventions, this was everyday life for New Yorkers. Here’s Jeva with more on the legacy of the Clean Air Act.
Before you step out for a run, read Emily Pontecorvo’s guide to what the Air Quality Index is and isn’t telling you.
People should not inhale smoke because of its dangerous health effects. But plants, interestingly, may actually thrive. Allow Jeva to explain.
Current conditions: Wildfire smoke tinted the skies orange across the Northeastern United States, rendering the air on New York’s Long Island thick and hazy all afternoon • London is a balmy 83 degrees Fahrenheit today, but new research shows that the number of days topping 86 degrees has quadrupled since the 1980s • Chile declared a state of emergency across 10 regions ahead of a series of major storms.
The resumption of fighting between the United States and Iran over the Strait of Hormuz could hammer energy markets harder than the previous phase of the conflict, as the crude stockpiles governments tapped at a record volumes to avert the worst economic impact of the war are now depleted. That’s the warning oil traders issued to the Financial Times on Wednesday. “We’ve burned through all of the buffers we had. Everything,” one trader said. “All of that’s now gone.” The gloomy assessment came as The Wall Street Journal reported that President Donald Trump has weighed expanding the U.S. military operation in Iran.
The U.S. Energy Information Administration, meanwhile, released its short-term energy outlook for July, in which the agency estimated that global crude oil inventories declined by 5.1 million barrels per day throughout the second quarter of this year, marking a decline above the seasonal average for that period over the past five years. Even before the conflict picked up again, my colleague Matthew Zeitlin wrote that it would be a long time before the Strait of Hormuz returned to normal operations. Don’t hold your breath.

In the steamy final weeks of August 2019, I found myself on Puerto Rico’s southeast shores. Set against the backdrop of the island’s central mountain range with streams that quench its underground aquifers, this sun-soaked coastal plain was coveted by Spanish and American sugar barons for centuries before transforming into a hub for U.S. agribusiness in recent decades. By the time I arrived, the aquifer was facing threats on multiple fronts. The Puerto Rico Aqueduct and Sewer Authority — known as PRASA or AAA in its Spanish acronym — was losing, by some estimates, more than half the water in its system to leakage, forcing the state-owned utility to draw more from aquifers. With the island’s electrical system still in tatters from Hurricane Maria and its debt at crushing levels, PRASA had little capacity to make the upgrades needed to prevent further decline. Meanwhile, local environmentalists accused regulators of providing little to no oversight of how much water industrial facilities drew from their wells. The story I ultimately reported suggested that water would follow electricity as the next major infrastructure crisis. It was just being felt first, at that time, in places like the town of Salinas, where people like Manases Vega — then a 65-year-old with a chronic respiratory illness — lost access to water every two weeks due to rationing.
Now the crisis has indeed spread. Last month, I told you when Governor Jenniffer González Colón called in the National Guard to help after a major water pipeline cracked. More than a month later, El Nuevo Día reported that the ongoing shortages are forcing residents to pay up to $700 per week for water. Businesses are paying up to $3,500 per week to buy enough bottles to cook, clean, and flush toilets. Hotels are spending up to $100,000, the island’s newspaper of record also reported last week. “We were without water for more than 50 days here on Calle Loíza,” Jonathan Collazo, a restaurant owner, said, referring to the popular street with bars and restaurants in Santurce, roughly the equivalent of San Juan’s Williamsburg.
For 12 years, Péter Szijjártó served as Hungary’s top diplomat in the government of former Prime Minister Viktor Orbán. On Wednesday, he announced his resignation from parliament to take a job at China’s top electric automaker. “I have received an extremely honorable offer to fill an international position from one of the world’s leading companies,” he wrote in a post on Facebook. “BYD is one of the greatest automotive success stories of the past twenty years and is also the world’s leading manufacturer of new energy vehicles.” His critics may quibble with the word “honorable.” Szijjártó established his relationship with the company while serving as foreign minister, and his government had planned to provide subsidies to BYD to open its new hub in Budapest. Just a few months ago, CNBC reported that the European Union was investigating labor violations at BYD’s factory in Szeged. Last month, the Hungarian investigative site 444 reported that a worker died at the plant.
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The Department of Energy has granted the startup SuperCritical Materials an exclusive license to commercialize patented technology to extract uranium from seawater. The deal requires the Austin-based company to manufacture and deploy the technology in the U.S. before exporting to allied nations, according to The Northern Miner. The concept of drawing uranium out of seawater has existed for years, an idea that took root before the vast new reserves of the metal were discovered on land. But seawater extraction remained on the agenda in countries without access to mines. When I visited the Philippines in 2024 to report on the country’s nuclear ambitions, I met scientists at the state atomic energy agency who were researching methods to secure a uranium supply from the water. But Ted Garrish, the assistant U.S. secretary of nuclear energy, said “this technology represents a potentially significant contribution to America’s long-term fuel security and industrial competitiveness.”
On Tuesday, New York Governor Kathy Hochul signed an executive order enacting the nation’s first statewide moratorium on data centers. On Wednesday, Michigan Governor Gretchen Whitmer, a fellow Democrat, staked out a different position, unveiling what E&E News called a “package of 10 commitments to ensure companies pay the full cost of construction, operation, power, and water” from new data centers for artificial intelligence. “On my watch, Michiganders have been protected from any rate increases due to data center development and we adopted some of the strongest protections for people and communities, but we need to do more,” Whitmer said in a statement.
“It’s been exciting to see different states — and, to be blunt, to see Democratic-governed states, particularly those in the Northeast and Mid-Atlantic — try to take on the data center boom. It’s good to see them test out ideas, solve problems through legislation, and harness this moment for the public good without strangling the buildout entirely,” my colleague Robinson Meyer wrote yesterday. “For too long, blue states have leaned into a particular economic model, one in which states want to attract varying forms of development but in fact succeed only in creating new suburbs, office buildings, and warehouses.”
It is, according to Bloomberg, “the plastic America loves to hate.” But a new industry group wants to save polystyrene by convincing lawmakers to stop targeting styrofoam. Formed by 17 companies that produce the material, the Polystyrene Recycling Alliance aims to forestall bans by making sure styrofoam is treated as recyclable under state packaging laws. “There’s the narrative that polystyrene is not part of the circular future,” Justin Riney, chair of the alliance and an executive at manufacturer Ineos Styrolutions, told the newswire. “We are adamant that we have the data, and we know that our products are part of the future.”
Proposed reforms to Europe’s Emissions Trading System could see the EU itself become a carbon credit customer.
The European Union is on the verge of making major changes to its carbon market, including integrating carbon removals into the scheme for the first time.
The bloc’s highest governing body, the European Commission, is expected to publish a proposal on Friday to reform the EU Emissions Trading System, or ETS, to align it with the EU’s 2040 emissions target. Under the current rules, companies cannot use carbon credits of any kind to comply with the regulations. But as 2040 grows closer, the EU plans to rely on carbon removal to offset some of the residual emissions from industries that are the most difficult to decarbonize.
Friday’s proposal will cover which types of carbon removal will be accepted, how many carbon removal credits can enter the market and when, and who will be allowed to buy them. One leading approach would have the EU government buy carbon removal directly, which would give the industry unprecedented market certainty.
“The ETS could be the single biggest driver of demand for carbon removal for the next decade,” Felix Grey, a policy manager for the carbon registry Isometric, told me.
The ETS enforces a cap on emissions that declines over time. Large emitters located in the EU must buy “allowances” for each ton of carbon they release, while the pool of available allowances shrinks apace with the emissions cap. Last year, the EU set a new target to reduce emissions 90% below 1990 levels by 2040, building off its earlier target of a 55% reduction by 2030. The upcoming proposal will address how the market should operate between 2030 and 2040 to achieve that goal.
There are many contentious questions surrounding this next phase, including how quickly the cap should decline over the decade. Another question is how many free allowances the EU should give to energy-intensive facilities such as steelmakers and fertilizer producers, which it does to prevent them from leaving Europe due to higher operating costs. Now that the EU has launched its carbon border adjustment mechanism, which taxes higher-carbon imports of these goods, free allowances may not be as necessary.
The integration of carbon removal is also controversial. At best, it could be an opportunity to improve and scale up nascent technologies that take carbon out of the atmosphere. At worst, it could enable polluters to avoid cutting their own emissions by purchasing carbon credits that don’t represent real climate benefits. Then there’s the possibility that removals will be so expensive that their integration into the ETS will have no effect at all — that is, it will be less expensive for companies to pursue emissions reductions than to buy their way out. The outcome will depend on the rules the EU Commission proposes and what its member states ultimately agree to.
Today, most carbon removal efforts are supported by research grants and voluntary carbon credit purchases from companies like Microsoft. A common mantra in the industry is that it will never reach a meaningful scale without government backing. Carbon removal startups aren’t selling a product with inherent value, they are selling a waste management solution. Unless governments require polluters to clean up their carbon waste, or else handle the job themselves as a public good, carbon removal will never take off.
Some governments have already dabbled in state-sponsored removals. Under the Biden administration, the U.S. launched a carbon removal purchase pilot prize, dedicating $35 million to buy carbon removal from a handful of promising companies. It never got past the initial award phase, however, and the Trump administration has not continued the program. A number of cities and counties across the U.S. have set up their own, much smaller purchasing programs in an effort to support the industry. Making carbon removal part of a regulatory program like the EU’s ETS could open the industry to a much bigger market.
As of today, there are a few knowns and a few unknowns about what the Commission plans to propose. For example, it’s relatively clear what methods of carbon removal the European Commission will allow into the market. Earlier this year, the EU finalized regulations for certifying three kinds of carbon removal under its official Carbon Removal and Carbon Farming scheme — direct air capture, biomass with carbon capture, and biochar projects — laying out criteria for quality as well as monitoring and reporting rules. For now, only these three project types can be considered.
Here’s the problem: Direct air capture and biomass with carbon capture are two of the most expensive project types. The average carbon removal credit from these methods costs hundreds of dollars. The average price of an allowance in the ETS, by contrast, has hovered between $70 and $90 over the past few years. Depending on how the Commission chooses to incorporate the credits into the market, it’s possible that no one will buy them.
The European Commission has said it is considering three options. The leading proposal is for the EU to create a central purchasing authority that buys removals using revenues from the ETS. For each removal credit the government acquires, it would issue an additional allowance into the market on top of the established cap. This would enable regulated facilities to emit a bit more than they could otherwise — a tradeoff that Grey argued would help them stay competitive. At the same time, it would also ensure that there’s demand for carbon removal regardless of the price.
The second option is to leave it to the market, giving emitters the option to purchase carbon removal credits as an alternative to purchasing allowances. In this version, similar to the first, the carbon removal credits would enter the market as an addition to the established amount of allowances. Whether or not anyone actually buys carbon removal will depend on how tight the allowance market is.
In the third option, emitters would be able to use carbon removal credits in lieu of allowances, but those credits would operate “below the cap,” so to speak. For every credit counted toward the ETS, regulators would reduce the number of allowances available to purchase by the same amount. It is hard to see why any company would purchase carbon removal in this version unless and until the price of a credit drops below the price of an allowance, however.
Carbon Market Watch, a nonprofit watchdog group, isn’t excited about any of these options. In a recent white paper on ETS reforms, it argued that Europe should support carbon removal separate from the ETS. “Direct integration of CDR in the ETS is either a dead end, or the start of a slippery slope,” the group warned. Carbon Market Watch also has concerns about the integrity of the EU’s carbon removal certification scheme. The group has formally challenged the methodologies for certifying biochar and biomass with carbon capture projects, arguing that they do not account for all the emissions associated with these processes, lack sustainable biomass sourcing safeguards, and in the case of biochar, are missing monitoring requirements. If ETS credits are built on faulty science, the EU could end up spending billions of dollars to little climate benefit.
The other big question about the integration is the amount of carbon removal the EU will allow into the market. Even if the bloc decides to create a central purchasing authority, its potential to help the industry scale will depend on how much it commits to buying. Grey, of Isometric, argued that staying on course for net zero by 2050 would require the EU to remove about 100 million metric tons of carbon per year by 2040.
“A strong proposal on Friday will confirm carbon removal’s integration from 2031, commit to buying removal at the scale required to meet net zero, and treat every credible method equally rather than picking winners,” he said.