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Rivian outlines R2 production location strategy, delays Georgia factory
Mar
In the present day, Rivian unveiled the brand new, cheaper R2 electrical automobile, a extra compact SUV than its R1S. It’s anticipated to start deliveries of the brand new R2 in 2026, however the place it’s going to be constructed was a query each viewer of Rivian’s reside streamed occasion on Thursday was pondering.
Rivian stated that it’ll initially begin production of the R2 in Normal, Illinois, at its flagship manufacturing facility and plans to basically delay the development of the Georgia manufacturing facility because it navigates monetary dangers.
Rivian R2 unveiling: Features, specs, price, release date revealed
Rivian stated it will give attention to the Regular Plant for initial R2 production in an effort to begin deliveries earlier and significantly scale back “the capital required for its launch.”
“Past considerably lowering the quantity of capital wanted to carry R2 to market, the corporate believes this method significantly reduces danger to the launch and related ramp; effectively leverages its present manufacturing and operations groups; and expands the full capability for the location to 215,000 models per yr,” Rivian stated.
The corporate nonetheless plans to construct the plant in Georgia however realizes that it wants to start building in a capital-efficient method and at a time when the corporate is extra steady.
Rivian Financials
Rivian inventory rose over 13 % at this time on the heels of the R2, R3, and R3X launch. Nonetheless, the corporate has struggled with varied financials, evident in its most up-to-date Earnings Name.
The R1T and R1S autos have seen affordable demand, however their excessive worth factors will not be encouraging patrons to take a danger on an up-and-coming firm, which is why many have sought to go together with the extra established Tesla, and even purchase a comparable fuel automobile.
Rivian Georgia Manufacturing facility on maintain
The announcement of the Georgia factory being paused comes at a time when the R2 and R3 autos will assist safe a extra steady monetary scenario for the corporate.
Profitability is now the main focus for Rivian, as it’s nonetheless working to ramp and scale manufacturing. The brand new vehicles unveiled at this time will assist establish quarterly profit, however it may take a number of years.
EXCLUSIVE: ‘Rivian wanted what Georgia had’: How the Peach State became Rivian’s $5B match
Beforehand, the street the place Rivian’s manufacturing facility was set to be inbuilt Georgia was labeled “Rivian Parkway.”
Nonetheless, these indicators have since been eliminated:
Credit score: Elijah Stancel | Fb
The $5 billion plant was set to be accomplished within the coming years and assist Rivian scale manufacturing. Now that the plant is on maintain, there isn’t any timetable for it to be accomplished.
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