Rivian’s new $46,000 R2 SUV aims to boost sales but may pressure already thin margins as competition in the EV sector intensifies.
Rivian Automotive (NASDAQ: RIVN) has begun shipping its R2 SUV, priced at $46,000, targeting a broader customer base than its $77,000 R1S model. The launch could drive sales growth but may squeeze margins further for the EV maker, which reported just $57 million in gross profit on $5.5 billion in revenue over the past year.
The company has struggled since its 2021 IPO, with shares plummeting over 80% as investors question its growth prospects. Rivian’s financials remain weak, and competition in the EV market has intensified, with even Tesla facing profitability challenges.
Shares have risen recently, but analysts caution against rushing into the stock, citing ongoing margin pressures and uncertain demand dynamics in the sector.