Rivian Reverses Discounts Ahead of R2 Launch

Rivian's stock took a hit on Thursday after reversing recent R1 discounts. The EV maker had been offering lower lease prices on its R1 vehicles, but now it's raising them across much of the lineup.

The changes affect trims like the R1S and R1T Dual Standard, which will see monthly payments rise from $799 to $899 in May. Higher-end Tri Motor variants also saw a 12% increase in lease prices.

Rivian's CFO Claire McDonough said Amazon van volumes are growing year-over-year, with the company seeing strong demand for its commercial business. The R2 midsize SUV is set to begin customer deliveries on June 9 and is expected to reach an entry price of $45,000, making it more accessible to a wider audience.

The vehicle will also feature built-in 5G connectivity powered by AT&T, which will provide faster software updates, better infotainment, and streaming services. Rivian's focus on software and AI was highlighted at the UBS Auto and Auto Tech Conference, with McDonough emphasizing the company's core as a technology firm operating in the mobility space.