Here's something that would have sounded absurd a decade ago: putting lidar sensors on a consumer vehicle that regular people can actually afford. Yet that's exactly where we are, according to Rivian Automotive Inc. (RIVN), which is charting an autonomy path that looks nothing like Tesla's approach.

The Price of Seeing in 3D Just Got Real

James Philbin, Rivian's vice president of autonomy and AI, says the economics of lidar have completely transformed. "It's been on this incredible cost curve," Philbin explained in comments reported by Business Insider. "10 years ago, it would be just unimaginable that you could put a lidar on a consumer vehicle. And now it's getting into that price point, kind of in the range of a radar."

For context, lidar uses laser light to measure distance and build detailed 3D maps of everything around a vehicle. It's particularly useful in low visibility conditions and complex driving scenarios where cameras might struggle. The technology was once prohibitively expensive, but falling costs have made it a realistic option for mass-market EVs.

More Sensors, Fewer Problems

Rivian's strategy diverges sharply from Tesla's camera-only philosophy. Philbin argues that combining lidar with cameras and radar creates redundancy that's essential for safety-critical systems. "The performance it gives you for that cost is really amazing," he said. "It's kind of a no-brainer that you would want more sensors and more modalities for something that's so safety critical."

Last week, Rivian laid out its full autonomy roadmap at an AI Day event. The company is developing its own computing chip, called the Rivian Autonomy Processor, and targeting Level 4 autonomy, which means the car can drive itself in most conditions without human intervention.

The R2 Gets Lidar, Eventually

Rivian's upcoming R2 SUV, its most affordable model at around $45,000, will launch in early 2026 without lidar initially. A lidar-equipped version is planned for later that year. CEO RJ Scaringe also announced a Universal Hands-Free assisted driving system and an Autonomy+ subscription service expected to roll out in early 2026.

Scaringe made an interesting point about the broader EV market: it's not that Americans don't want affordable electric vehicles, it's that there aren't enough options. He noted that Tesla vehicles are essentially the only real choices under $50,000 right now. The R2, with deliveries targeted for the first half of next year, is Rivian's answer to that gap in the market.

It's a fascinating moment in the autonomous driving race. While some automakers strip out sensors to cut costs, Rivian is doubling down on a multi-sensor approach now that the technology has become economically feasible. Whether that strategy pays off depends on execution, but the falling cost curve certainly makes the bet more interesting.