Amazon-Backed Rivian Surges 13% After Announcing Cheaper New SUV

"Shares of Rivian Automotive surged 13% on Thursday," reports CNBC, "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." CNBC notes that Rivian's current vehicles "start at roughly $70,000 and can top $100,000," so the new cheaper R2 midsize SUV (starting at $45,000) could be more appealing. "Especially if it qualifies for the $7,500 EV tax credit," adds the Verge:"Seven percent of new vehicle sales are electric," [Rivian founder and CEO RJ] Scaringe notes.... "The reality is that Tesla continues to be wildly successful, and we want to pull from that 93 percent that haven't made the jump to pure EV, because the form factor didn't fit their lifestyle." The article adds that Rivian "will use Tesla's NACS connectors for its future vehicles starting in 2025, which will allow Rivian owners to use the company's Supercharger Network. Both the R2 and R3 will have the NACS ports built natively into the vehicle..." "I would say with absolute and complete certainty that the entire world is going to convert to electric vehicles," Scaringe tells The Verge. "I've never been more bullish on electrification. I've never been more bullish on Rivian." More from CNBC: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... 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. "Its battery will be capable of charging from 10 to 80 percent in under 30 minutes," notes Car and Driver. UPDATE: The Verge reports that less than 24 hours after launching the R2, Rivian has already received more than 68,000 reservations. It will go into production in the first half of 2026.

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