EV Manufacturer Rivian Soars as New Electric SUVs Unveiled, Stock Jumps 13.4%

EV Manufacturer Rivian Soars as New Electric SUVs Unveiled, Stock Jumps 13.4%

By Staff Writer, 08 March 2024

Rivian, the electric vehicle manufacturer, has announced its latest move to expand its product line and accelerate production timelines.

The company unveiled its smaller and more affordable electric R2 SUVs and R3 crossovers, with plans to commence production of the R2 at its existing U.S. factory in order to expedite deliveries by the first half of 2026.

Following this announcement, Rivian's stock surged by 13.4%, closing at $12.51, as investors reacted positively to the company's strategy, anticipating savings of over $2 billion.

The R2 SUV comes with a starting price of $45,000, significantly lower than Rivian's flagship R1 SUVs and pickups.

This move is crucial for Rivian's growth trajectory, especially amidst a slowdown in electric vehicle demand attributed to high interest rates. Typically, electric vehicles tend to be pricier compared to traditional gasoline-powered cars.

Initially, Rivian had planned to introduce the R2 at a proposed $5 billion facility in Georgia.

However, the company has now revised its strategy, aiming to launch production at its existing plant in Normal, Illinois. This adjustment allows Rivian to expedite the timeline, with the R2 slated for release in the first half of 2026.

RJ Scaringe, Rivian's CEO, emphasized, "We're able to achieve that accelerated timing by leveraging our production capabilities in Normal, using our Illinois site to launch R2 and get that into market as quickly as we can."

Vitaly Golumb, an investor in Rivian, expressed optimism, stating, "This certainly takes some pressure off the continued massive cash investment needed for the Georgia plant. I would also hope that they are being conservative and will be able to pull forward the delivery dates even further."

Source: Chris Kirkham and Abhirup Roy / Reuters

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