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Rivian shares accelerates after unveiling new EV models

March 7, 2024 3:33 PM

Investing.com -- Rivian surged Thursday after the electric vehicle maker unveiled three new EVs and said it would save over $2 billion from pausing production at its Georgia plant.


Rivian Automotive Inc (NASDAQ: RIVN) was up more than 13% following the news.


The launch of the R2 sports utility vehicle was widely expected, but the company also unveiled two additional crossovers, the R3 and R3X.


The R2 is expected to start at about $45,000 with production now set to begin earlier than expected in the first of half 2026, the company following its decision to pause production at its plant in Georgia in favor of its plant in Normal, Illinois.


The R2 and R3 that are equipped with larger battery sizes are expected to have 300 miles of range on a single charge and offer 0-60 mph acceleration in under 3 seconds on more powerful engines.


The R2 EV is expected to be produced at the company's existing Normal, Illinois manufacturing plant rather than its plant in Georgia -- in a move that is expected to save the EV maker over $2.25 billion compared with a prior estimates of producing it in Georgia.


Following the R2 launch, the Illinois manufacturing plant will see the total capacity ramp-up to 215,000 units per year, while the timing for resuming construction at the plant in Georgia is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois.


The surge in Rivian helped restore some sentiment in the EV maker following its underwhelming 2024 production guide amid a weaker backdrop for EV demand.


For 2024, the company previously said it expects to produce 57,000 vehicles, missing Wall Street estimates of 66,000,

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