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R2 production moving to Rivian’s Normal factory
As customer , VIP guests and medium mill around into theRivianSouth Coast Theater in Laguna Beach on Thursday — the Pacific Ocean ram on the beach just a few hundred feet away — a mix of Bob Hope and excitement riffle through the arena . The occasion was the unveiling of the Rivian R2 , a belittled and more affordable all - electrical SUV , and a vital vehicle for the EV upstart hop to show the world it ’s here to stay .
former patron of Rivian , friends , and founder RJ Scaringe ’s new family filled the seats of the vivify theater . The zephyr was filled with conversations about their Rivian vehicle , exclamation and congratulations , squeeze and handshakes , and word of their hopes for the R2 .
When the Rivian R2 did arrive , it did not number alone . Scaringe had two “ one more thing instant , ” prove off two more electric vehicles under the next - generation R3 platform , along with update on output and suggest about “ adventure ” accessories that will match up with the active life style stigmatize Rivian has become famous for .
The R2 , a two - row , five - seat , all - electric midsized SUV that will have more than 300 miles of chain and a base price of $ 45,000 , was the main issue . The encore was the smallerR3 and the R3x carrying into action , a compact hatchback - panache EV with sporty vibe .
A $2.25 billion move
The R2 , which customers canreserve startingtoday , will come in several powertrains , a individual motor , a dual motor and a tri - motor version . Some of the biggest hand clapping fall when Scaringe announced that the company was moving up production of the R2 to the first one-half of 2026 .
tuck inside that promulgation was a multibillion - dollar surprise . Scaringe articulate the R2 would be develop at the automaker ’s Normal , Illinois , factory — a change from the companionship ’s original plan to produce the R2 at a$5 billion factorynear Atlanta , Georgia , that is just now under expression . That shift will deliver the company $ 2.25 billion .
Today , Rivian producesfour vehicles at its sole mill in Normal : its two consumer vehicle , the R1 triiodothyronine truck and the R1S SUV , and two versions of its commercial vanguard .
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John Krafcik , the former Waymo CEO and a Rivian instrument panel member , tell TechCrunch on the sidelines the move to the Normal factory was the boastful story today — one that would give the automaker the power to save up money and get vehicle in customers ’ custody sooner .
In aregulatory filingfollowing the reveal , the company said beyond“significantly reducing the amount of capital needed to bring R2 to market , the company believes this approach considerably trim risk to the launching and associated ramp ; efficiently leverages its existing manufacturing and mental process squad ; and expands the total capacity for the site to 215,000 units per yr . ”
Onstage , Scaringe still give a nod to the Georgia plant , noting that it was important to the company ’s scheme to scaleproduction of R2 and R3 . However , it ’s unclear when that Georgia plant will be back in play . The company said in the filing that “ timing for resuming construction is expected to be afterward to focus its teams on the capital - effective launch of R2 in Normal , Illinois . ”
From handshake to hug
Scaringe called the party ’s first EVs , the R1S and R1 T , the company ’s shake to the domain . The R2 and the R3 , which sent the gang abuzz — their hoots and howls echo through the house — was clear designed as the full embracing .
beam onstage as he awaited the R3 to roll out , Scaringe seemed determined to post a message : Rivian has arrived .
The all - electric vehicle is still two years aside from yield . And when it emerges , the R2 will face an evolved EV market with more choices and players , many of which are expected to strike into the same , more affordable family . Scaringe and the excogitation squad have incline into the R2 styling and accessories — the trademarks of its R1S and R1T.
Rivian call the R2 will be something wholly different . It wo n’t just be low monetary value , clear it more approachable to a wider client base , and produced at loudness . The R2 will also reflect manufacturing matureness — a vehicle loaded with efficiencies that will finally lead Rivian down the way of life to profitableness .
Rivian loses money on every R1S and R1 liothyronine it makes , to the tune of $ 43,372 per unit delivered in the fourth quarter of 2023 , according to regulatory filing . So finding efficiencies to reduce manufacturing costs as well as better wad with provider is critical to Rivian ’s aim to make money on each fomite it sells .
Scaringe play up how the company has worked on changes to reduce costs while preserve , even improving upon , the R1 vehicles .
The company is focused on vertically integrating electronics , further developing its software platform and packaging the battery and other component to better manufacturability . The R2 is also adulterate with sensors — 11 cameras and five radiolocation — and more robust compute to support what Scaringe described as a high floor of “ self - driving . ” He later added that the feature , which would be enabled on the highway , would take into account drivers to get their hands off the wheel and oculus off the road .
