Rivian CEO RJ Scaringe reacts at an occasion to unveil a smaller R2 SUV in Laguna Seashore, California, U.S., March 7, 2024.
Mike Blake | Reuters
Shares of Rivian Automotive surged roughly 10% Thursday because the EV maker unveiled three new automobiles and introduced greater than $2 billion in financial savings associated to pausing development on a plant in Georgia.
Two of these EVs got here as a shock to shoppers and buyers. Rivian CEO RJ Scaringe, in asserting the corporate’s upcoming R2 SUV, additionally revealed two further crossovers referred to as the R3 and R3X, a efficiency variant.
The R2 is anticipated to start out at about $45,000 when it goes on sale through the first half of 2026. It is anticipated to be the fourth product for Rivian following a industrial supply van and bigger, costlier R1S SUV and R1T pickup for shoppers. The R1 automobiles begin at roughly $70,000 and might prime $100,000.
The Rivian R3 electrical automobile is unveiled on the Rivian South Coast Theater in Laguna Seashore, California, on March 7, 2024.
Patrick T. Fallon | AFP | Getty Pictures
Scaringe disclosed few particulars in regards to the shock R3 crossovers, however instructed CNBC’s Phil LeBeau that the R3 might be priced decrease than the R1.
“These symbolize our future,” Scaringe mentioned throughout a livestreamed occasion from Laguna Seashore, California.
The bulletins come at an important time for Rivian because it makes an attempt to develop its buyer base amid slower-than-expected EV gross sales within the U.S. after automakers flooded the first-adopter market with dear all-electric automobiles lately.
Rivian’s gross sales tempo has slowed in current quarters, and the corporate broadly dissatisfied buyers final month by lacking quarterly estimates and forecasting barely decrease manufacturing this 12 months in comparison with 2023 because of plant downtime.
The Amazon-backed firm has been burning by way of money to enhance present EV manufacturing and slim losses.
Shifting manufacturing of the R2 from the in-development plant in Georgia to the corporate’s plant in Regular, Illinois, will save $2.25 billion, Rivian mentioned in a press launch. It would additionally permit the automobile to start manufacturing earlier, it mentioned.
The corporate mentioned it should pause development on the Georgia plant, to be resumed “later.”
Rivian CEO RJ Scaringe speaks at an occasion to unveil a smaller R2 SUV throughout an occasion in Laguna Seashore, California, U.S., March 7, 2024.Â
Mike Blake | Reuters
The R2 will function on a brand new EV platform however appears like a smaller model of the R1S SUV. It is going to be able to greater than 300 miles of all-electric vary on a single cost and 0-60 mph time in under3 seconds, the corporate mentioned.
“R2 represents the essence of our model, whereas concentrating on the numerous midsized SUV section, an enormous market with restricted compelling EV choices past Tesla,” Rivian CEO RJ Scaringe instructed buyers final month. “R2 has been developed with vertically built-in propulsion platforms, electronics and software program to create an unbelievable consumer expertise.”
Rivian’s inventory efficiency