Rivian Automotive's stock surged 13% following the unveiling of three new vehicles and the announcement of over $2 billion in savings by pausing construction on a plant in Georgia. The new vehicles include the R2 SUV and two unexpected crossovers, the R3 and R3X, with the R2 set to launch in the first half of 2026 starting at approximately $45,000. These additions will expand Rivian's product lineup, which currently includes a commercial delivery van, the R1S SUV, and the R1T pickup, priced from $70,000 to over $100,000.
During a livestreamed event, Rivian CEO RJ Scaringe described the R3 crossovers as part of the company's future strategy. While details on the R3 models are limited, Scaringe hinted that they would be priced lower than the R1 series. This announcement comes at a crucial time for Rivian as it seeks to broaden its customer base amidst slower-than-expected EV sales in the U.S., a result of the market being saturated with high-priced electric vehicles.
Rivian's recent performance has been under scrutiny, with the company missing quarterly estimates and projecting slightly lower production for 2024 compared to 2023 due to plant downtime. The company, backed by Amazon, has been focused on improving current EV production and narrowing its losses. Shifting production of the R2 from Georgia to Illinois will not only save $2.25 billion but also expedite the vehicle's production timeline.
The R2 will feature a new EV platform and is designed to offer over 300 miles of all-electric range on a single charge, with a 0-60 mph time of under 3 seconds. Scaringe emphasized the importance of the R2 in targeting the significant midsize SUV segment, highlighting its integration of propulsion platforms, electronics, and software to deliver a top-tier user experience. By pausing construction on the Georgia plant, Rivian can focus on streamlining production and meeting the growing demand for electric vehicles.
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