On Thursday, Rivian Automotive’s shares surged after it revealed new electric vehicle (EV) models and savings from the Georgia plant halt.
The American EV maker’s stock advanced by 13.42% to $12.51 per share on March 07 for a three-day winning streak. Furthermore, industry watchers project a 3.12% gain to $12.90 apiece in the coming market session.
Rivian CEO RJ Scaringe revealed the company’s cheaper, smaller R2 SUV at an EV event in Laguna Beach, California. Moreover, he unveiled details of a new crossover model called the R3 and its high-performance variant, the R3X.
Scaringe added that the R2 will have a base price of $45,000.00 upon release in the first half of 2026. It will be the automaker’s fourth EV product following the Amazon commercial delivery van, R1S SUV, and R1T pickup.
Investors applauded the R2’s accessible pricing, which is significantly lower than the $70,000.00 to $100,000.00 price range of the R1 series models. Moreover, Scaringe reassured stakeholders that the R3 crossovers would be cheaper than R1 vehicles.
Despite looking like a smaller R1S SUV, the Rivian R2 will be the first to operate on the company’s new EV platform. It will have a single-charge range of 300 miles and can accelerate from 0 to 60 mph in under 3 seconds.
The R2 will mark Rivian’s entry into the midsized SUV segment, a market with no major EV brands except Tesla.
Georgia Plant Suspended as Rivian Cuts Costs
Last October, Rivian announced plans to hold a groundbreaking ceremony for its $5.00 billion Georgia plant in early 2024. Nevertheless, the carmaker halted its construction indefinitely due to cost-cutting measures driven by slowing EV demand in the US.
On February 21, the Amazon-backed company revealed it would eliminate 10.00% of its workforce, its third layoff in two years. In the fourth quarter, it incurred $1.52 billion in expenses on $1.32 billion in revenue for a net loss of $200.00 million.
The Georgia plant, located 40 miles outside Atlanta, would have an output capacity of 400,000 R2 units per year. Rivian will divert production to its factory in Normal, Illinois, saving $2.25 billion and accelerating the release of the R2.
