Rivian experienced a significant surge in its stock value on Thursday following the revelation of three new electric vehicles (EVs) and plans to save over $2 billion by temporarily halting production at its Georgia plant.
Shares of Rivian Automotive Inc (NASDAQ: RIVN) rose by more than 13% in response to the announcement.
While the launch of the R2 sports utility vehicle was anticipated, the company surprised with the introduction of two additional crossovers, namely the R3 and R3X.
Priced starting at approximately $45,000, the R2 is now scheduled for production earlier than initially expected, beginning in the first half of 2026. This decision comes after Rivian paused production at its Georgia plant in favor of its facility in Normal, Illinois.
Both the R2 and R3, equipped with larger battery sizes, are projected to offer a range of 300 miles on a single charge and boast impressive acceleration from 0 to 60 mph in under 3 seconds with more powerful engines.
A notable change in plans is the decision to produce the R2 EV at the existing Normal, Illinois manufacturing plant instead of the plant in Georgia. This strategic move is anticipated to result in cost savings exceeding $2.25 billion compared to previous estimates for production in Georgia.
Following the R2 launch, the Illinois manufacturing plant's total capacity will increase to 215,000 units per year. Construction at the Georgia plant is expected to resume at a later time, allowing the company to focus its teams on the capital-efficient launch of the R2 in Normal, Illinois.
The positive response to Rivian's developments helped improve sentiment around the EV maker, particularly following its less-than-impressive 2024 production guidance amid a challenging environment for EV demand. The company had previously projected production of 57,000 vehicles for 2024, falling short of Wall Street estimates of 66,000.
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