Rivian CEO RJ Scaringe reacts at an event unveiling a smaller R2 SUV in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
Shares of Rivian Automotive rose 13% on Thursday as the electric vehicle maker unveiled three new vehicles and announced more than $2 billion in savings related to pausing construction of a plant in Georgia.
Two of these electric vehicles came as a surprise to consumers and investors. Rivian CEO RJ Scaringe also revealed two other crossovers called the R3 and R3X, a performance variant, while announcing the company’s upcoming R2 SUV.
The R2 is expected to start at around $45,000 when it launches in the first half of 2026. It’s expected to be the fourth product for Rivian, following a commercial van and a larger, more expensive R1S SUV and R1T pickup truck for consumers. The R1 vehicles start at around $70,000 and can exceed $100,000.
The Rivian R3 electric vehicle will be unveiled on March 7, 2024 at the Rivian South Coast Theater in Laguna Beach, California.
Patrick T. Fallon | AFP | Getty Images
Scaringe gave few details about the surprise R3 crossovers, but told CNBC’s Phil LeBeau that the R3 will be priced lower than the R1.
“These represent our future,” Scaringe said during a livestreamed event from Laguna Beach, California.
The announcements come at a crucial time for Rivian as the company looks to expand its customer base as electric vehicle sales in the U.S. have been slower than expected after automakers flooded the early adopter market with expensive all-electric vehicles in recent years.
Rivian’s sales pace has slowed in recent quarters, and the company largely disappointed investors last month by missing quarterly estimates and forecasting slightly lower production this year compared to 2023 due to plant shutdowns.
The AmazonThe company he backs has spent money to improve current production of electric vehicles and limit losses.
Shifting production of the R2 from the Georgia plant under development to the company’s factory in Normal, Illinois, would save $2.25 billion, Rivian said in a news release. This means that production of the vehicle can begin earlier, it said.
The company said it would pause construction of the Georgia plant and resume it “later.”
Rivian CEO RJ Scaringe speaks at an event to unveil a smaller R2 SUV during an event in Laguna Beach, California, USA, March 7, 2024.
Mike Blake | Reuters
The R2 will run on a new EV platform, but looks like a smaller version of the R1S SUV. The company said it can achieve an all-electric range of more than 300 miles and accelerate from 0 to 60 mph in under 3 seconds on a single charge.
“R2 represents the essence of our brand while targeting the significant midsize SUV segment, a huge market with limited attractive EV options beyond that.” TeslaRivian CEO RJ Scaringe told investors last month. “R2 was designed with vertically integrated propulsion platforms, electronics and software to create an incredible user experience.”
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2024-03-07 21:08:53
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