Rivian Automotive’s stock soared by 13% on Thursday after the electric vehicle (EV) manufacturer introduced three new models and revealed it had achieved over $2 billion in cost savings by halting the development of a new facility in Georgia.
The announcement featured two unexpected EVs alongside the previously anticipated R2 SUV. Rivian’s CEO, RJ Scaringe, took the opportunity to showcase the R3 and R3X crossovers, the latter being a high-performance edition.
Rivian R2 Specs & Release Date
The R2, slated for a market debut in the first half of 2026, is priced starting around $45,000. It marks Rivian’s fourth venture into the EV market, following a commercial delivery van, and the pricier R1S SUV and R1T pickup, which are in the consumer segment starting from approximately $70,000, with high-end versions reaching over $100,000. Scaringe provided limited details on the newly introduced R3 models but mentioned to CNBC’s Phil LeBeau that they would be more affordable than the R1 series.
Scaringe highlighted these developments as pivotal for Rivian’s future in a live event broadcasted from Laguna Beach, California.
These revelations arrive at a critical juncture for Rivian, aiming to broaden its clientele amidst a slowdown in the U.S. EV market growth. This slowdown is partly due to the saturation of the market with expensive EV options in recent years.
Rivian Strategy & Plans
Rivian has experienced a deceleration in sales and disappointed investors last month with lower-than-anticipated quarterly results and a slight reduction in this year’s production forecast compared to 2023, attributed to operational halts.
To mitigate cash burn and refine its current EV offerings, Rivian has decided to transfer the R2 production from the planned Georgia plant to its existing facility in Normal, Illinois, which is expected to save $2.25 billion and expedite production.
The company has temporarily stopped work on the Georgia site, with plans to resume later. The R2, designed on a new EV platform, resembles a compact version of the R1S SUV and promises over 300 miles on a single charge and acceleration from 0 to 60 mph in less than three seconds.
Scaringe emphasized the R2’s importance to Rivian’s identity and its aim to capture the large mid-sized SUV market, which currently has few attractive EV options beyond Tesla, during last month’s discussion with investors. He noted that the R2 is engineered with integrated propulsion systems, electronics, and software to enhance the user experience.
