Bengaluru — Rivian’s projection that its cheaper models would attract more buyers this year drove a 25% stock jump on Friday, the latest sign of electric vehicle (EV) makers betting on affordable cars to revive sales after a US federal subsidy expired.
The company plans to roll out a new R2 model in the second quarter starting at nearly $45,000, similar to Tesla’s Model Y, marking a big step down from the high-end R1 family of vehicles that Rivian is known for.
Rivian’s move is part of a broader shift in the industry this year, with automakers pursuing lower-priced models to drum up demand after EV sales took a hit from the expiry of the $7,500 tax break and other Trump administration policy changes.
“For the stock itself, nothing matters more than a timely launch for the R2 SUV, and in this regard, Rivian remains essentially on track,” Piper Sandler analysts said.
