Rivian generally had a good day yesterday, launching the R2 SUV along with the surprise R3 crossover and dune buggy-esque R3X that were met with general acclaim. Buried in that press release, however, was the news that the automaker is halting production of its $5 billion Georgia plant in order to save money.
Instead of building the R2 in Georgia as originally planned, the company will start production of the electric SUV at its existing Normal, Illinois plant. "Beyond significantly reducing the amount of capital needed to bring R2 to market, the company believes this approach considerably reduces risk to the launch and associated ram," the company said.
The move will also allow Rivian to bring the R2 to market sooner, in the first half of 2026, while saving the company $2.25 billion in capital spending in the short term. That's important since it has been burning through cash of late, according to recent reports.
Of all the EV startups to come along of late, Rivian has been one of the most promising thanks to significant investments from Amazon, Ford and others. The company's electric R1T pickup and R1S SUV were also widely praised for their attractive designs, healthy range and more.
Ramping up an automotive startup is no easy feat, though, especially in a market that's been tough on EVs of late — with even stalwart Tesla feeling the pinch. It doesn't help that startup rivals like Fisker are having serious cash flow issues, as it may spook consumers wary of untested EV brands.
Rivian selected Georgia as the site for its second EV factory back in 2021, receiving up to $1.5 billion in state incentives. At the time, the company said it hoped to eventually produce 400,000 electric vehicles there annually. With plant changes, the Normal, Illinois facility will augment capacity to 215,000 units annually across R1T, R1S, EDV, RCV, and R2.
The Georgia location remains in the picture, but Rivian only said it construction would restart later. "Rivian’s Georgia plant remains an extremely important part of its strategy to scale production of R2 and R3," it said in a statement.
This article originally appeared on Engadget at https://www.engadget.com/rivian-is-halting-construction-of-its-5-billion-georgia-plant-to-save-money-082236810.html?src=rss https://www.engadget.com/rivian-is-halting-construction-of-its-5-billion-georgia-plant-to-save-money-082236810.html?src=rssLogin to add comment
Other posts in this group
These are some recently released titles we think are worth adding to your reading list. This week, we're diving into Alex Foster's futuristic debut, Circular Motion, and the return of
OpenAI has achieved "gold medal-level performance" at the International Math Olympiad, notching another important milestone for AI's fast-paced growth. Alexander Wei, a research scientist at OpenAI
Looks like we can skip the drum roll for the next Battl
Welcome to our weekly roundup of the goings on in the indie game space. It's been quite the busy spell, with several notable games debuting or landing on more platforms and some intriguing upcoming
If I had to describe the status of Subnautica 2 in just three words, it would be these: messy, messy, messy. That’s not to say the game itself is in terrible shape — this is actually a piv
