RIVN Stock Snaps Record Streak: Rivian Reverses R1 Discounts Days Before High-Stakes R2 Launch

• Rivian reversed recent R1 discounts, raising lease prices across much of the lineup.
• Investor attention has shifted to the R2, with customer deliveries of the mass-market SUV set to begin on June 9.
• Rivian and AT&T expanded their partnership to bring 5G connectivity, AI features and faster software updates to the R2.

Shares of Rivian Automotive, Inc. (RIVN) snapped a record winning streak on Thursday after the EV maker pulled back incentives on its R1 vehicles just days before the launch of the R2, raising the stakes for Rivian's best shot at reaching the mass market.

RIVN stock snapped 10 sessions of gains on Thursday, ending 1% lower at $18.12. Shares also traded nearly 1% down overnight heading into Friday. 

Rivian Reverses R1 Discounts

Rivian has raised its monthly payments across much of its R1 lineup after cutting them last month. The R1S and R1T Dual Standard trims returned to $899 per month from $799 in May, erasing last month's discount. Higher-end Tri Motor variants also saw lease prices rise by 12%, according to EV. Rather than offering lease reductions, Rivian is now enticing customers with financing rates as low as 0.99% annual percentage rate and a $3,000 lease bonus on select Performance and Tri trims.

The strategy marks a notable shift from earlier this year, when Rivian offered 0% financing on certain Gen 2 Quad models and lease incentives of up to $6,500. Rivian's first-quarter automotive business posted a $62 million gross loss, compared with a $92 million profit a year earlier, resulting in a negative 7% automotive gross margin. Consumer demand has also faced pressure, with commercial van sales to Amazon accounting for much of the company's recent delivery growth.

All Eyes On Rivian R2

However, the spotlight has shifted to the R2, Rivian's much-awaited midsize SUV, which begins customer deliveries on June 9 and is expected to open the door to a larger segment of the EV market than the premium-priced R1 lineup. The vehicle starts at $57,990 in Launch Edition form and is expected to eventually hit a $45,000 entry price, placing it much closer to the heart of the U.S. EV market than Rivian's premium R1 lineup, which starts above $70,000.

Speaking at the UBS Auto and Auto Tech Conference on Thursday, CFO Claire McDonough said: "We're really excited to tap into that demand and the interest that we've seen in market for R2." 

Ahead of the launch, Rivian and AT&T also announced an expansion of their partnership that will bring built-in 5G connectivity to the R2. The connectivity platform will support faster over-the-air software updates, better infotainment, streaming services, real-time vehicle functions and Rivian's AI assistant.

"With 5G connectivity powered by AT&T, R2 owners will get a vehicle that can access powerful apps like navigation and streaming services, answer complex questions via the AI-powered Rivian Assistant, and improve continuously through over-the-air software updates."

RIVN Banks On Back-Half R2 Growth

While Rivian expressed confidence in demand for the R2, the EV maker acknowledged that execution will ultimately determine the launch's success. "You can only ramp as quickly as your weakest supplier," McDonough said.

The company said it has teams working directly with suppliers to assess manufacturing readiness and quality control. Rivian delivered just over 10,000 vehicles in the first quarter and expects a similar level in the second quarter. To reach its full-year target of 62,000 to 67,000 deliveries, production will need to accelerate significantly in the second half of the year. McDonough said that deliveries will be weighted more heavily toward the fourth quarter.

Amazon Boosts RIVN's Commercial Business

Rivian's commercial business provides an important source of stability for the EV maker. McDonough said Amazon is increasing purchases of Rivian's electric delivery vans as the retailer expands deployment across its logistics network.

"We're now in a position where we're seeing them increase their volumes on a year-over-year basis," she said. "We anticipate there to be strong demand from Amazon throughout the course of this year."

She also noted Amazon’s long-term economics of commercial EV adoption: "The beauty of the overall offering of electric delivery vans for them is the total cost of ownership advantages that they provide," McDonough said. "Amazon, which is the largest fleet operator, they see all of the benefits that the transition makes."

Rivian's Focus On Software And AI

The UBS conference also highlighted Rivian's efforts to position itself as more than an EV manufacturer. "At Rivian's core, we're a technology company," McDonough said. "We're a technology company that's operating in the mobility space."

The company is investing heavily in software, autonomy, and proprietary semiconductor technology, while targeting driverless, Uber-powered mobility services beginning in 2028. McDonough said Rivian sees opportunities for its internally developed chip architecture beyond vehicles: "We see it not just in automotive types of applications, but we see it lending itself quite well also to the universe of robotics," she said.

She also highlighted potential opportunities in tech licensing as AI expands into real-world applications: "I'm really excited about the potential, not just for Rivian, but for technology licensing as a whole," McDonough said.

How Do Retail Traders Feel About RIVN?

On Stocktwits, retail sentiment for RIVN was ‘extremely bullish’ amid ‘high’ message volume.

One user said, “$RIVN $18 is such a psychological resistance, it went up once after the AI day, may be R2 launch day is another.”

Another bullish user said, “$RIVN thesis still very much in tact! Onwards to $20 a share within the next week!”

The stock has risen 29% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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