Rivian shares poised for best day since January as the EV maker hypes its next SUV during earnings call
Rivian shares surged more than 15% the morning following its Q3 earnings results.
Rivian is on pace to record its second-best trading day of the year. The EV maker’s shares rose more than 15% in Wednesday morning trading following its third-quarter results, which dropped after market close on Tuesday.
The company posted a top- and bottom-line beat for Q3, including a nearly 80% sales spike year over year, and reaffirmed its guidance for full-year earnings and deliveries. That, along with an earnings call flush with hype for Rivian’s upcoming midsize SUV, the R2, appears to have investors excited.
“We’re very, very bullish on what we’re building with R2. The way we think about it as a team is we’re building the best car you can buy in this category and in this price point,” CEO RJ Scaringe said on the company’s call with investors Tuesday evening.
Scaringe pitched the R2, which will be priced in the “$45,000 to $50,000 range,” as a direct competitor to Tesla’s Model 3 and Model Y. The company reaffirmed that it anticipates R2 production costs to come in at half of the R1’s.
“At this mass market price point... there’s really been a single dominant brand with really two products. That’s of course Tesla with the Model 3 and the Model Y,” Scaringe said. “And with them taking up roughly half the market, 50% market share, it’s not a reflection of a healthy market. It’s a reflection of a very underserved market in terms of choice and options.”
Rivian, which has been working to cut costs ahead of mass production of the R2, said it will devote nearly three-quarters of its Normal, Illinois, plant to building the vehicle. Its future Georgia plant will eventually support further production of the R2 and future vehicles, which are “architected... and designed from the very beginning contemplating Europe and planning for Europe.”
Rivian said the R2 is still on track to launch in the first half of 2026. “We would steer folks to there being limited volumes in the first half of the year. And then the second half of the year, we’ll build up our ramp and see increasing production volumes,” said CFO Claire McDonough.
