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Rivian targets Tesla's Model Y with new SUV amid Tesla's strong sales but stock dip.

Market News
06 Jul 2026
CNBC
View Source
Neutral
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Tesla reported strong vehicle production and deliveries in Q2 2025, beating estimates with 480,126 deliveries, yet its stock dipped due to a high $1.5 trillion valuation. Rivian, much smaller with a $23.5 billion market cap, launched the R2 SUV to compete directly with Tesla's popular Model Y in the mid-market SUV segment, marking a strategic shift from its previous high-end models. Despite Rivian's promising new product, the company is not yet profitable and may need additional funding before reaching profitability around 2030. Investors are cautiously optimistic, using options strategies to manage risk amid this evolving competition in the EV market.

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