Rivian CEO RJ Scaringe responds to an event to unveil a smaller R2 SUV in Laguna Beach, California, USA, March 7, 2024.
Mike Blake | Reuters
Rivian car industry surprised consumers and investors Thursday by unveiling two additional all-electric vehicles during the debut of the upcoming R2 SUV, which is expected to start at around $45,000 when it goes on sale in the first half of 2026.
In addition to the R2, the EV startup unveiled two crossovers, the R3 and R3X, a performance variant of the vehicle. Rivian CEO RJ Scaringe revealed few details about the surprise crossovers, but the announcements pushed Rivian's shares up about 10% around midday Thursday.
“These represent our future,” Scaringe said at an event streamed live from a theater in Laguna Beach, California.
The R2 is expected to be Rivian's fourth product, following a commercial van and a larger, more expensive R1S SUV and R1T consumer pickup. The R1 vehicles start at around $70,000 and can go over $100,000.
The Rivian R3 electric vehicle will be unveiled on March 7, 2024 at the Rivian South Coast Theater in Laguna Beach, California.
Patrick T. Fallon | AFP | Getty Images
It comes at a crucial time for Rivian as it tries to expand its customer base amid slower-than-expected EV sales in the U.S. after automakers flooded the early adopter market with expensive all-electric vehicles in recent years.
Rivian's sales pace has slowed in recent quarters, and the company disappointed investors in a big way last month by missing quarterly estimates and predicting slightly lower production this year compared to 2023 due to factory outages.
The Amazon-backed company has been burning money to improve current EV production and cut losses.
The R2 will run on a new EV platform, but looks like a smaller version of the R1S SUV. The company will be able to achieve an all-electric range of more than 300 miles on a single charge and go from 0 to 60 mph in less than 3 seconds, the company said.
Rivian CEO RJ Scaringe speaks at an event to unveil a smaller R2 SUV during an event in Laguna Beach, California, USA, March 7, 2024.
Mike Blake | Reuters
“R2 represents the essence of our brand as it targets the sizable mid-size SUV segment, a huge market with limited, attractive EV options outside of it. TeslaRivian CEO RJ Scaringe told investors last month. 'R2 was developed with vertically integrated propulsion platforms, electronics and software to create an incredible user experience.'
Scaringe said the R2 will begin production at the company's factory in Normal, Illinois, rather than at a facility currently under construction in Georgia. The change helped the company advance production of the vehicle.
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