Rivian shares surge as company reveals new EV models, $2.25 billion in cost savings

Shares
of


Rivian
Automotive
surged
13%
on
Thursday
as
the
EV
maker
unveiled
three
new
vehicles
and
announced
more
than
$2
billion
in
savings
related
to
pausing
construction
on
a
plant
in
Georgia.

Two
of
those
EVs
came
as
a
surprise
to
consumers
and
investors.
Rivian
CEO
RJ
Scaringe,
in
announcing
the
company’s
upcoming
R2
SUV,
also
revealed
two
additional
crossovers
called
the
R3
and
R3X,
a
performance
variant.

The
R2
is
expected
to
start
at
about
$45,000
when
it
goes
on
sale
during
the
first
half
of
2026.
It’s
expected
to
be
the
fourth
product
for
Rivian
following
a
commercial
delivery
van
and
larger,
more
expensive

R1S
SUV
and
R1T
pickup
for
consumers.
The
R1
vehicles
start
at
roughly
$70,000
and
can
top
$100,000.

Scaringe
disclosed
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
it
attempts
to
expand
its
customer
base
amid
slower-than-expected
EV
sales
in
the
U.S.
after
automakers
flooded
the
first-adopter
market
with
pricey
all-electric
vehicles
in
recent
years.

Rivian’s
sales
pace
has
slowed
in
recent
quarters,
and
the
company

widely
disappointed
investors
last
month
by
missing
quarterly
estimates
and
forecasting
slightly
lower
production
this
year
compared
to
2023
due
to
plant
downtime.

The


Amazon-backed
company
has
been
burning
through
cash
to
improve
current
EV
production
and
narrow
losses.

Shifting
production
of
the
R2
from
the
in-development
plant
in
Georgia
to
the
company’s
plant
in
Normal,
Illinois,
will
save
$2.25
billion,
Rivian
said
in
a
press
release.
It
will
also
allow
the
vehicle
to
begin
production
earlier,
it
said.

The
company
said
it
will
pause
construction
on
the
Georgia
plant,
to
be
resumed
“later.”

The
R2
will
operate
on
a
new
EV
platform
but
looks
like
a
smaller
version
of
the
R1S
SUV.
It
will
be
capable
of
more
than
300
miles
of
all-electric
range
on
a
single
charge
and
0-60
mph
time
in
under3
seconds,
the
company
said.

“R2
represents
the
essence
of
our
brand,
while
targeting
the
significant
midsized
SUV
segment,
a
massive
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.”