Rivian Automotive (RIVN 1.68%) launched two new vehicle models yesterday, and the stock is still accelerating higher Friday morning. It wasn’t just about the new R2 and surprise unveiling of the future R3 models helping to drive the stock higher again today, though.
As of 10:15 a.m. ET, Rivian shares were trading 7.1% higher, even after the stock jumped more than 13% yesterday.
An EV sweet spot
Rivian is trying to fill a popular slot for consumers looking to transition to electric vehicles (EVs). It started with the R1 platform full-size pickup truck and SUV models. Yesterday, the company unveiled its next-generation R2 vehicle that will cater to the popular midsize SUV auto segment.
The company expects the R2 to start at a more affordable price of $45,000, too. That SUV is expected to begin deliveries in 2026. In a surprise announcement, though, Rivian also showed off a new R3. That smaller and even less expensive crossover SUV will follow the launch of the R2.
Financial fears
The other news that has investors piling into the stock today was that the R2 will not be built at a new factory under construction in Georgia. With expanded capacity at its current Illinois plant, Rivian will begin shipping the R2 from there.
The company says that will save it $2.25 billion as it slows capital spending for the Georgia facility. That has allayed fears that Rivian could run out of money before it even makes it to the R2 launch. With thoughts of a potential bankruptcy on the back burner, investors are buying into Rivian again today.
Howard Smith has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
