Why did Rivian's stock jump on Friday?

Rivian's stock increased significantly due to projections that its new, more affordable R2 model will attract more buyers this year.

What is the starting price for Rivian's new R2 model?

The new R2 model from Rivian is planned to start at nearly $45,000.

What is the broader trend in the electric vehicle industry?

The electric vehicle industry is shifting towards lower-priced models to boost demand after a key federal subsidy expired.

Home / Business and Economy / Rivian Bets Big on $45K R2 SUV for Growth

Rivian Bets Big on $45K R2 SUV for Growth

13 Feb

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Summary

Rivian's stock jumped nearly 20% following projections of cheaper models.
The new R2 model will start at nearly $45,000, competing with Tesla.
Industry-wide shift to affordable EVs aims to counter subsidy expiry.

Rivian Bets Big on $45K R2 SUV for Growth

Rivian's stock experienced a significant surge of nearly 20% on Friday, fueled by the company's strategy to attract more buyers with a new, more affordable R2 model. This vehicle, set to launch in the second quarter, will start at approximately $45,000, positioning it as a competitor to Tesla's Model Y.

The automotive industry is witnessing a widespread shift towards lower-priced electric vehicles. This trend is a direct response to decreased demand after the expiration of a $7,500 federal tax credit and other policy changes. Automakers are prioritizing the development of more accessible EVs to revitalize sales.