Rivian Unveils R2 SUV; To Save $2.25 Bln With Delay In Georgia Plant

(RTTNews) - Electric vehicle maker Rivian Automotive, Inc. announced the launch of new EV models, including the much awaited R2 electric sport-utility vehicle or SUV, with a view to tackling slowing vehicle demand and heightened competition in the EV industry.

As part of its efforts to preserve cash to produce more affordable vehicles, the company also announced a delay in the construction of its planned $5 billion Georgia EV plant, which would result in around $2.25 billion savings.

Following the news, shares of Rivian surged 13.4 percent on Thursday's regular trading and a further 3.1 percent in the extended trading on the Nasdaq. In pre-market activity on Friday, the shares were gaining 3 percent.

The company's new SUV was launched by Rivian's Chief Executive Officer RJ Scaringe, during an event at its new Laguna showroom in California.

Rivian, backed by Amazon, Ford Motor and other investors, also introduced the R3, a compact SUV, and the R3X, a high-performance variant.

The new affordable R2 model will now be produced at its Normal, Illinois facility. Initially, R2 was expected to be the first vehicle produced in Georgia. The new, five-passenger vehicle should be available in the first half of 2026.

The starting price of R2 would be about $45,000, which is much lesser than its larger S.U.V., the R1S.

Rivian, as part of its expansion plans, was expecting to break ground on the $5 billion Georgia plant this year. Though delayed, the company said it was committed to building the plant.

Rivian is expecting the Georgia plant to create 7,500 jobs and eventually produce 400,000 vehicles a year.

The company, which is in deal to produce thousands of electric delivery vans for Amazon, in December last year had signed an agreement to sell its vehicles to telecom major AT&T.

Rivian also has agreed with its competitor Tesla Inc. to adopt Tesla Superchargers for its electric vehicles.

On the Nasdaq, Rivian shares closed Thursday regular trading at $12.51, up 13.42 percent. In the after hours, the stock was up 3.12 percent at $12.90.

In the pre-market activity, the shares were being exchanged at $12.89, up 3.04 percent.