Shares of Rivian Automotive (NASDAQ: RIVN) jumped more than 2% on Friday following the debut of its cheaper R2 SUV, which garnered tens of thousands of reservations within hours. This surge in interest has sparked optimism about the electric vehicle manufacturer’s potential for growth in the mass-market segment.
RJ Scaringe, founder and CEO of Rivian Automotive (RIVN), took to Twitter on Friday to announce a significant milestone for the company’s latest offering, the R2 model. According to Scaringe, Rivian has garnered over 68,000 reservations for the R2 in less than a day, marking a robust reception from consumers.
Scaringe wrote,
“Overwhelmed by the wonderful response to our new vehicles: R2, R3 and R3X. We are thrilled to see this vehicle resonate so strongly with our community!”
Market analysts weighed in, suggesting that Rivian’s decision to produce the R2 at its existing U.S. facility while halting the construction of a second plant in Georgia could lead to significant cost savings, potentially delaying the need for further fundraising.
Analysts foresee the pause in the Georgia plant to generate additional savings exceeding $2.25 billion. Furthermore, it will accelerate the delivery timeline for the R2, with shipments expected to commence in the first half of 2026.
Deutsche Bank analyst Emmanuel Rosner said,
“Cost savings will leave the company with enough cash on hand through R2’s start of production, relieving considerable pressure to raise capital in the near term.”
Rivian disclosed that its Illinois plant, now manufacturing electric delivery vans, can produce 215,000 vehicles annually following the launch of R2 production.
Analysts at Bank of America said,
“With this new product, Rivian can potentially break more into the mass market segment, which represents about half of total U.S. auto sales.”
Rivian Introduces R3 and R3X
Rivian also introduced the R3 alongside a more powerful R3X variant on Thursday. The R3 will launch after the R2 and will cost less than it.
These announcements come amidst a backdrop of slower-than-expected growth in electric vehicle demand, which has weighed on industry shares throughout the year. Rivian’s stock had experienced a nearly 50% decline in value before the unveiling of its latest models.
Rivian (NASDAQ: RIVN) Stock Movement
RIVN stock inclined 2.16% to close at $12.78 on Friday. The traders had exchanged hands with 107,515,162 (107.51 million) shares compared to the average daily trading volume of 41.44 million.
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