EV maker Rivian unveils smaller, less expensive R2 SUVs
B,y Chris Kirkham and Abhirup RoyLAGUNA BEACH, California (Reuters) – Rivian on Thursday unveiled its smaller and less expensive “R2” electric SUVs with a starting price of $45,000 in an effort to capture the mass market amid a slowdown in demand for EVs.
Rivian shares were up 10% at $12.16 on Thursday afternoon.
The R2 – priced well below the company’s flagship R1 SUVs and pickups – is seen as critical to Rivian’s success. High interest rates have led to a sharp slowdown in demand for EVs, which are typically more pricey than gasoline-powered cars.
The R2 is a five-seater version of the automaker’s larger R1S SUV and offers more than 300 miles (483 km) of range.
Rivian produced 57,232 vehicles last year and said growth this year would be flat as it tackles slowing demand and multiple weeks of production downtime to make upgrades intended to cut costs and improve margins.
Despite the immense popularity of SUVs and pickups in the United States, ramping up production and generating demand beyond the initial wave of enthusiasts has been an uphill battle.
Offering affordable EVs at scale is seen as key to attracting customers still unwilling to switch over from their cheaper gas-guzzling vehicles.
(Reporting by Chris Kirkham in Laguna Beach, California, and Abhirup Roy in San Francisco; Editing by Matthew Lewis)
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