Rivian surges as upcoming affordable SUV powers EV delivery forecast

Core Viewpoint - Rivian's stock surged by 24% following its projection that the introduction of more affordable models, particularly the R2 SUV starting at nearly $45,000, will attract more buyers and boost deliveries in 2026 [1][1][1] Company Summary - Rivian plans to launch the R2 model in the second quarter of this year, which is a significant price reduction from its high-end R1 family of vehicles [1][1] - The company anticipates a 53% increase in deliveries in 2026, projecting between 62,000 and 67,000 vehicles, compared to previous estimates of 64,130 vehicles [1][1] - Despite being unprofitable, Rivian's stock rose over 48% last year due to optimism surrounding the R2 model, although it has faced a 29% decline this year amid subdued overall EV sentiment [1][1] Industry Summary - The electric vehicle industry is shifting towards lower-priced models to stimulate demand after the expiration of a $7,500 federal tax break [1][1] - Competitors like Ford and General Motors are also focusing on affordable EVs, with Ford developing a $30,000 model and GM reintroducing the Bolt EV at just under $30,000 [1][1] - Other luxury brands, such as Lucid, are launching cheaper variants to adapt to the changing market dynamics [1][1]