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Rivian Starts R2 Production in Illinois, Eyes Late-Spring Deliveries

The lower-priced SUV is central to Rivian's path to profitability.

Overview

  • Rivian, which said Wednesday it began volume, saleable R2 builds at its Normal, Illinois plant, plans first customer handovers later this spring.
  • The rollout starts with a $57,990 Performance Launch Edition targeted for late June deliveries, with employee vehicles already in use for internal testing and software feedback.
  • Production continued after Friday's EF-1 tornado damaged the factory's south-end logistics area, and CEO RJ Scaringe said the near-term ramp plan remains unchanged.
  • Management expects the R2 to weigh on margins at first but to help Rivian exit 2026 with positive automotive gross profit, with die castings, a new drive unit and a simpler suspension cutting key costs.
  • Company guidance points to roughly 22,000 to 23,000 R2 deliveries in 2026, with output starting on one shift before adding a second later in the year and scaling further in 2027.