Rivian Expands Illinois Factory As It Gears To Start Production Of R2 SUV

EV startup Rivian Automotive Inc. (NASDAQ:RIVN) is expanding its factory in Illinois as it gears up for the start of production of its new R2 vehicle.

What Happened: “R2 expansion moving quickly!,” Rivian CEO RJ Scaringe said in a post on X, formerly Twitter. The CEO’s post was accompanied by a picture of the company’s Illinois factory.

Rivian was initially looking to start production of its R2 SUV at its new factory in Georgia. However, the company halted construction of the plant in Georgia last year in a bid to cut costs and instead decided to launch R2 at its existing facility.

The decision to launch R2 in Illinois instead of Georga will enable the vehicle to be launched earlier and save billions in capital until the start of R2 production, the company then said.

Why It Matters: The R2 is expected to start at around $45,000 — the same price range as Tesla’s best-selling Model Y SUV. The new vehicle will be smaller and less expensive than Rivian's existing R1 offerings priced around $70,000, and the company expects it to expand its total addressable market and cater to the demand for cheaper EVs. The company received more than 68,000 reservations for the vehicle in less than 24 hours after unveiling it in March.

In addition to its R1 vehicles, Rivian also manufactures electric delivery vans for fleet owners. Online retailer Amazon.com is the main customer for the vans manufactured by the company.

For the full year 2024, Rivian delivered 51,579 EVs, within its guidance of 50,500 to 52,000 deliveries. The company, however, has yet to report a positive gross profit in a quarter.

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