Rivian (RIVN) starts R2 production days after tornado hit factory, deliveries this spring

Key Points:

• Rivian has officially begun production of its R2 electric SUV at its Normal, Illinois plant, overcoming a recent EF-1 tornado that damaged the facility and delayed operations by several days.
• The first R2 units will be delivered to employees, with customer deliveries expected by the end of spring and broader customer configuration invitations planned for June.
• The initial R2 model, the Performance Launch Edition, starts at $57,990, featuring 656 horsepower, 330 miles of range, and advanced driver-assistance, but the more affordable $45,000 base model won't arrive until late 2027.
• Rivian aims for the R2 to drive profitability through significant cost reductions in manufacturing, with production volumes expected to increase substantially in 2027 and a target for positive automotive gross margins by the end of that year.
• The company also secured a $1.25 billion partnership with Uber for a robotaxi initiative based on the R2, adding potential future revenue streams amid the challenges of ramping up production and autonomous driving development.