Shares of Rivian Automotive surged by 13% on Thursday as the electric vehicle (EV) manufacturer revealed three new vehicles and announced savings exceeding $2 billion linked to halting construction on a plant in Georgia.
“Two of those EVs came as a surprise to consumers and investors,” stated Rivian CEO RJ Scaringe, unveiling the company’s forthcoming R2 SUV alongside two unexpected crossovers named the R3 and R3X, a performance variant.
Expected to hit the market in the first half of 2026, the R2 is anticipated to debut at around $45,000, becoming Rivian’s fourth offering following a commercial delivery van, and the larger, pricier R1S SUV and R1T pickup. The R1 models are priced from roughly $70,000 and can exceed $100,000.
Scaringe provided limited details about the newly revealed R3 crossovers but assured CNBC’s Phil LeBeau that the R3 would be priced lower than the R1.
“These represent our future,” remarked Scaringe during a livestreamed event from Laguna Beach, California.
These announcements arrive at a pivotal juncture for Rivian as it endeavors to broaden its customer base amidst sluggish EV sales in the U.S., following an influx of high-priced all-electric vehicles in recent years, targeting primarily early adopters.
Rivian’s sales momentum has waned in recent quarters, disappointing investors last month by falling short of quarterly projections and projecting slightly reduced production for the current year compared to 2023 due to plant downtime.
Backed by Amazon, Rivian has been consuming capital to enhance current EV production and mitigate losses.
The relocation of R2 production from the under-construction Georgia plant to Rivian’s facility in Normal, Illinois, is anticipated to yield savings of $2.25 billion, the company revealed in a press release. This shift will expedite the vehicle’s production commencement, the company added.
Construction on the Georgia plant will be paused, with plans to resume at a later date.
The R2 will operate on a fresh EV platform but resemble a downsized version of the R1S SUV. Rivian claims it will offer over 300 miles of all-electric range on a single charge and accelerate from 0 to 60 mph in under 3 seconds.
“R2 embodies the essence of our brand while targeting the substantial mid-sized SUV segment, a vast market with limited compelling EV options beyond Tesla,” Scaringe informed investors last month. “R2 has been crafted with vertically integrated propulsion platforms, electronics, and software to deliver an extraordinary user experience.”
