Rivian Automotive, Inc. (RIVN) shares plummeted 5.03% during intraday trading on Thursday, as the electric vehicle maker unveiled pricing for its crucial R2 SUV lineup that disappointed investors facing a challenging market environment.

The company announced that deliveries of its R2 SUV will begin this spring with a launch variant priced at $57,990 to $58,000, significantly higher than the initially targeted $45,000 price point that management had previously reiterated. Cheaper variants, including a $45,000 model expected to significantly broaden Rivian's customer base, won't arrive until late 2027. This pricing comes amid a difficult period for the EV industry, with the removal of the $7,500 EV purchase tax credit in September reducing affordability and pressuring sales.

Analysts note that the majority of Rivian's over 100,000-unit order backlog for the R2 was likely placed assuming the vehicle would qualify for the EV tax credit, making the actual purchase price significantly more expensive for consumers. The EV market is experiencing what has been described as an "EV winter," with U.S. policy changes including import tariffs and elimination of regulatory credits raising prices and hurting sales across the industry.