Rivian Automotive NASDAQ:RIVN shares moved higher after the EV maker raised its full-year delivery outlook, offering investors a possible sign of renewed momentum as the company begins deliveries of its lower-cost R2 SUV. The company now expects to deliver between 65,000 and 70,000 vehicles this year, above Wall Street's roughly 63,000 estimate.

Rivian delivered 12,194 EVs in the second quarter, ahead of the roughly 10,600 expected by Wall Street, while production reached 12,613 vehicles, also topping estimates. The update came after several uneven quarters, with Rivian also pointing to strong quarter-over-quarter growth across its commercial van and R1 EVs as R2 sales began.

The stronger outlook could be an important development for Rivian as it works through rising expenses, supply chain issues, and softer EV demand, particularly in the U.S. The R2 SUV, starting at nearly $58,000, is viewed as critical to Rivian's future and possibly its path toward profitability, while still sitting well below the R1 SUV and truck models that can cost more than $100,000.