Rivian is also speeding up its delivery plans as a result of this
Rivian on Thursday introduced its smaller, less expensive electric R2 SUVs and R3 crossovers with plans to start producing the R2 at its existing U.S. factory to hasten deliveries in the first half of 2026. The automaker shares closed up 13.4 percent at USD12.51 (about RM59) after the company said its new strategy would help save more than USD2 billion (roughly RM9,378,000,000).
The Rivian R2’s starting price of USD45,000 (around RM211,005) is well below the company’s flagship R1 SUVs and pickups. The new vehicle is seen as critical to the brand’s success amid a sharp slowdown in EV demand due to high interest rates. Electric vehicles (EVs) are typically more expensive than gasoline-powered cars.
Moreover, Rivian had previously planned to launch the R2, a five-seater version of the automaker’s larger R1S SUV with more than 300 miles (483 km) of range, at a planned USD5 billion (about RM23,445,000,000) plant in Georgia. Still, some analysts have questioned the need for building the factory.
Rivian had previously said that the R2 would launch in 2026, without elaborating, but on Thursday it said that by starting production in Normal, Illinois, it was accelerating its timeline to the first half of that year. The brand also said it had sufficient capital to fund operations through the launch of the R2, thus accelerating its overall delivery plans.
Expanding production in Normal and building the Georgia plant will be expensive. Rivian raised more than USD3 billion (roughly RM14,067,000,000) with two bond issuances last year and has just over USD9 billion (about RM42,201,000,000) in cash, but some analysts and investors say it will need additional capital by 2026.
The Illinois plant, where Rivian also makes its electric delivery vans, can produce 150,000 vehicles a year, a Rivian spokesperson said. With the addition of the R2, the brand said it expected total annual capacity there of 215,000 vehicles. Construction would resume later in Georgia as that site “remains an extremely important part of its long-term strategy.” Rivian said.
Despite the immense popularity of SUVs and pickups in the United States, ramping up production and generating demand beyond the initial wave of enthusiasts has been an uphill battle. In a surprise move, Rivian also introduced the R3 and a more powerful R3X variant on Thursday. The R3 will also apparently cost less than the R2.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
