EV maker Rivian Automotive Inc RIVN said on Tuesday that it intends to increase annual production capacity at its Normal, Illinois, manufacturing plant to 215,000 vehicles, including 155,000 units of its upcoming R2 SUV.
What Happened: Rivian was initially planning to manufacture its R2 SUV at its upcoming Georgia plant. However, the company has now halted the construction of its new plant and intends to start R2 production at its existing facility in Illinois in the first half of 2026.
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 to make more of it. The company received more than 68,000 reservations for the vehicle in less than 24 hours after unveiling it in March.
“We anticipate that most of the work to integrate R2 into our Normal facility will happen in 2025 and as a result, the plant will be down for a few weeks next year,” company CFO Claire McDonough said while adding that the company is also considering how to increase capacity at the paint shop. The paint shop in Illinois currently has a capacity of just 150,000 units.
Cost Benefits Of R2 Production: Starting R2 production at Normal will provide Rivian with savings of over $2.25 billion between now and the start of production, the company said, while adding that its cost-cutting initiative will help its existing cash balance fund operations through the launch of R2.
The company subsequently lowered its capital expenditure outlook for 2024 by $550 million to $1.2 billion. Capital expenditure in 2025, it said, will be about $1.5 billion.
Rivian Financials: Rivian reported first-quarter revenue of $1.20 billion, beating a Street consensus estimate of $1.16 billion and a loss of $1.48 per share, which missed a Street consensus estimate of a loss of $1.25 per share. The company ended the first quarter with $9.05 billion of total liquidity, including an asset-based revolving credit facility.
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