Rivian CEO RJ Scaringe reacts at an event to unveil a smaller R2 SUV in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
Rivian Automotive surprised consumers and investors Thursday by unveiling two additional all-electric vehicles during the debut of its upcoming R2 SUV, which is expected to start at about $45,000 when it goes on sale during the first half of 2026.
In addition to the R2, the EV startup revealed two crossovers called the R3 and R3X, a performance variant of the vehicle. Rivian CEO RJ Scaringe disclosed few details about the surprise crossovers, but the announcements propelled Rivian’s stock up about 10% in midday trading Thursday.
“These represent our future,” Scaringe said during an event that was livestreamed from a theater in Laguna Beach, California.
The R2 is expected to be the Rivian’s fourth product 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.
The Rivian R3 electric vehicle is unveiled at the Rivian South Coast Theater in Laguna Beach, California, on March 7, 2024.
Patrick T. Fallon | AFP | Getty Images
It comes 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.
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.
Rivian CEO RJ Scaringe speaks at an event to unveil a smaller R2 SUV during an event in Laguna Beach, California, U.S., March 7, 2024.
Mike Blake | Reuters
“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.”
Scaringe said the R2 will begin production at the company’s plant in Normal, Illinois, rather than a plant in Georgia that’s currently under construction. The change assisted the company in pulling the vehicle’s production forward.
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