Low-cost SUV R2 starts delivery! Rivian (RIVN.US) exceeds expectations in production and sales, raising annual delivery targets.

Rivian Automotive(RIVN.US) has raised its full-year sales outlook, which is seen as a positive sign as the electric vehicle manufacturer has started delivering its lower-priced SUV, which is seen as crucial for the company's future. In a statement on Thursday, the company said it expects to deliver 65,000 to 70,000 vehicles this year. The midpoint of that range exceeds the Wall Street analysts' expectations of about 63,000 vehicles. Rivian stated that sales of its commercial vans and R1 series electric vehicles have shown strong sequential growth with the introduction of its new R2 electric SUV. The electric vehicle manufacturer also delivered 12,194 electric vehicles in the second quarter, surpassing Wall Street's expectations of around 10,600 vehicles, showing improvement after several quarters of sales fluctuations. The production of 1,213 vehicles also exceeded expectations. The optimistic outlook injects much-needed momentum for the electric vehicle manufacturer, which has been struggling with rising costs, supply chain issues, and slowing demand for electric vehicles (especially in the US). Rivian cut hundreds of jobs last month, marking its latest round of layoffs in the past year aimed at cost control. Rivian recently started selling its latest model, the R2 SUV, aiming to capture a larger market share by offering a smaller and cheaper model than the company's flagship trucks and SUVs. The automaker also produces delivery vans, primarily for one of its largest shareholders, the e-commerce giant Amazon.com, Inc. The new R2 SUV product line is widely seen as key to Rivian ultimately achieving profitability. The starting price for the first batch of R2 models is close to $58,000, about $13,000 more expensive than the entry-level version that Rivian previously said would be launched later next year. However, the price of this model is still lower than the R1 SUV and truck models, which could cost over $100,000.