EV startup Rivian Automotive Inc. RIVN is increasing its manufacturing unit in Illinois because it gears up for the beginning of manufacturing of its new R2 automobile.
What Occurred: “R2 growth transferring shortly!,” Rivian CEO RJ Scaringe stated in a submit on X, previously Twitter. The CEO’s submit was accompanied by an image of the corporate’s Illinois manufacturing unit.
Rivian was initially trying to begin manufacturing of its R2 SUV at its new manufacturing unit in Georgia. Nonetheless, the corporate halted development of the plant in Georgia final yr in a bid to chop prices and as an alternative determined to launch R2 at its present facility.
The choice to launch R2 in Illinois as an alternative of Georga will allow the automobile to be launched earlier and save billions in capital till the beginning of R2 manufacturing, the corporate then stated.
Why It Issues: The R2 is anticipated to start out at round $45,000 — the identical worth vary as Tesla’s best-selling Mannequin Y SUV. The brand new automobile will probably be smaller and cheaper than Rivian’s present R1 choices priced round $70,000, and the corporate expects it to broaden its complete addressable market and cater to the demand for cheaper EVs. The corporate obtained greater than 68,000 reservations for the automobile in lower than 24 hours after unveiling it in March.
Along with its R1 automobiles, Rivian additionally manufactures electrical supply vans for fleet homeowners. On-line retailer Amazon.com is the principle buyer for the vans manufactured by the corporate.
For the total yr 2024, Rivian delivered 51,579 EVs, inside its steerage of fifty,500 to 52,000 deliveries. The corporate, nevertheless, has but to report a optimistic gross revenue in 1 / 4.
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