Rivian Boosted by Positive Response to New Models
Electric vehicle maker Rivian recently unveiled its latest model, the R2 SUV, in a make-or-break moment for the company. The Amazon-backed company saw its market value soar by over $1.7 billion following the positive initial reaction to the R2 SUV.
This boost comes after Rivian announced a disappointing quarter and outlook last month, which led to a decrease in market cap. Speculation has been swirling around Rivian, with Gene Munster suggesting that Apple could potentially buy the company due to its low valuation.
Tesla CEO Elon Musk also weighed in on Rivian, commenting on the company’s product design and suggesting that it needed to cut costs to avoid bankruptcy. In a surprising move, Rivian announced plans to delay building a $5 billion factory in Georgia in favor of using its existing plant in Illinois, a decision that analysts believe will relieve pressure on the company to raise capital in the near term.
Despite the positive response to the R2 SUV and the announcement of two new models, the R3 compact SUV and R3X, Rivian has never turned a profit and continues to lose money on each vehicle sold. CEO Robert “RJ” Scaringe revealed that the company had received over 68,000 reservations for the R2 in less than 24 hours, but the future of Rivian still remains uncertain as it navigates challenges in the EV market.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”