Rivian CEO RJ Scaringe reacts at an event to unveil a smaller R2 SUV in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
Shares of Rivian Automotive surged roughly 10% Thursday because the EV maker unveiled three latest vehicles and announced greater than $2 billion in savings related to pausing construction on a plant in Georgia.
Two of those EVs got here as a surprise to consumers and investors. Rivian CEO RJ Scaringe, in announcing the corporate’s upcoming R2 SUV, also revealed two additional crossovers called the R3 and R3X, a performance variant.
The R2 is anticipated to start out at about $45,000 when it goes on sale through the first half of 2026. It’s expected to be the fourth product for Rivian following a business delivery van and larger, costlier R1S SUV and R1T pickup for consumers. The R1 vehicles start at roughly $70,000 and can top $100,000.
Scaringe disclosed few details concerning the surprise R3 crossovers, but said during a livestreamed event from Laguna Beach, California, that they “represent our future.”
The Rivian R3 electric vehicle is unveiled on the Rivian South Coast Theater in Laguna Beach, California, on March 7, 2024.
Patrick T. Fallon | AFP | Getty Images
The announcements come at a vital time for Rivian because it attempts to expand its customer base amid slower-than-expected EV sales within the U.S. after automakers flooded the first-adopter market with pricey all-electric vehicles in recent times.
Rivian’s sales pace has slowed in recent quarters, and the corporate widely disillusioned investors last month by missing quarterly estimates and forecasting barely lower production this yr in comparison with 2023 as a consequence of plant downtime.
The Amazon-backed company has been burning through money to enhance current EV production and narrow losses.
Rivian CEO RJ Scaringe speaks at an event to unveil a smaller R2 SUV during an event in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
Shifting production of the R2 from the in-development plant in Georgia to the corporate’s plant in Normal, Illinois, will save $2.25 billion, Rivian said in a press release. It’ll also allow the vehicle to start production earlier, it said.
The corporate said it is going to pause construction on the Georgia plant, to be resumed “later.”
The R2 will operate on a latest EV platform but looks like a smaller version of the R1S SUV. It’ll be able to greater than 300 miles of all-electric range on a single charge and 0-60 mph time in under3 seconds, the corporate said.
“R2 represents the essence of our brand, while targeting the numerous midsized SUV segment, a large market with limited compelling EV options beyond Tesla,” Rivian CEO RJ Scaringe told investors last month. “R2 has been developed with vertically integrated propulsion platforms, electronics and software to create an incredible user experience.”
Rivian’s stock performance