Rivian to Launch New R2 Electric SUV at Illinois Facility Saving $2.25 Billion
In a surprising turn of events, Rivian has announced that it will launch its new R2 electric SUV at its facility in Normal, Illinois instead of its planned $5 billion EV plant in Georgia. This decision will save the company a significant $2.25 billion in capital.
The R2 electric SUV is expected to be more affordable than previous models, with a starting price of $45,000. It will be available in single, dual, and tri-motor versions, all offering over 300 miles of range on a single charge. Rivian also introduced the R3 electric crossover variant at the launch event.
Launching the R2 in Normal will allow Rivian to increase its production capacity to 215,000 vehicles annually. The Georgia EV plant remains an essential part of Rivian’s strategy to scale production of the R2 and R3 models, with construction delayed to focus on the R2 launch.
The R2 and R3 models will help Rivian expand into new markets, including Europe. The move to launch the R2 in Normal is reminiscent of Tesla’s strategy to build next-gen EVs at established plants rather than new facilities.
By revamping production in Normal, Rivian expects to achieve a “modest growth profit” by the end of the year and maintain vehicle deliveries at around 57,000 units. This decision demonstrates Rivian’s commitment to innovation and efficiency in the EV market.
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