Rivian (RIVN) Axes Workforce While Ramping Up for Game-Changing R2 SUV Launch

Rivian slashes jobs in strategic pivot toward mass-market electric vehicle production.

The R2 Countdown Begins

While Tesla dominates headlines, Rivian makes brutal cuts behind the scenes—streamlining operations ahead of its make-or-break R2 SUV debut. No numbers disclosed, but insiders whisper this isn't just trimming fat; it's surgical restructuring.

Wall Street's Electric Dilemma

Investors cheer efficiency moves while secretly sweating the cash burn. Another EV player tightening belts before the big show—because nothing says 'growth stock' like layoffs before product launch. The market's patience wears thinner than battery margins.

Zero-sum game? Rivian bets the farm on the R2 while the Street watches, arms crossed, already calculating the next write-down. Typical finance crowd—they'd short oxygen if they could.

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The MOVE highlights Rivian’s efforts to streamline operations and lower expenses while keeping focus on the R2 SUV, which will be its lowest-priced vehicle so far.

EV Industry Faces Pressure

The layoffs come as U.S. automakers face big policy changes. A $7,500 federal tax credit for EV buyers ends later this month, forcing several carmakers to slow production. Rivian and other EV-only firms are also being hurt by new rules on fuel economy fines. The company recently said these changes could delay about $100 million in revenue from credit sales to other automakers.

This shift has already hit others in the sector. General Motors (GM) cut 360 jobs at a Detroit plant, and Volkswagen (VWAGY) is slowing ID.4 SUV output in Tennessee, with 160 workers placed on temporary leave.

R2 SUV Could Be a Turning Point

Rivian went public in 2021 but has been under pressure to cut losses. The company lost $1.1 billion in Q2, though it says it has enough cash to fund the launch of the R2. Priced at about $45,000, the new SUV is far cheaper than its R1T pickup ($70,990) and R1S SUV ($76,900).

The company expects much stronger demand for the R2, which could help it reach more mainstream buyers. Analysts believe success with this model will be key to Rivian’s long-term survival.

Is RIVN Stock a Buy or Sell? 

Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 13 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $13.85 per share implies 1.09% upside potential.