- Rivian’s 1.1-million-square-foot manufacturing unit growth to construct the R2 SUV is basically full, the corporate stated on Tuesday.
- Rivian stated it can begin testing tools on the brand new R2 line within the coming quarter.
- R2 manufacturing is on monitor, however Rivian now expects to lose extra money this yr.
Rivian on Tuesday stated the sprawling manufacturing unit addition that can home manufacturing of the upcoming $45,000 R2 crossover is basically performed.
“This quarter we made vital progress in R2 growth and testing,” the EV startup’s CEO, RJ Scaringe, stated in a press release. “We additionally considerably accomplished the growth of our Regular, Illinois facility and have begun putting in manufacturing tools in preparation for our begin of manufacturing.”
The 1.1-million-square-foot growth will home the physique store and common meeting operations for the R2. As soon as the expanded Regular, Illinois, plant is up and operating, it can have a manufacturing capability of 215,000 EVs, Rivian has stated.
The R2 crossover ought to arrive in 2026 as Rivian’s first true mainstream providing—an in depth Tesla Mannequin Y competitor that may ship the manufacturing scale that is completely vital to a worthwhile auto enterprise.
On Rivian’s earnings name on Tuesday, Scaringe stated the EV is vital to the corporate’s objective of constructing “tens of millions” of autos per yr.
Rivian reported earnings on Tuesdaynoting in its launch that “preparations for the launch of R2 stay on monitor” and that it plans to begin validating the brand new R2 line’s tools and manufacturing processes within the third quarter.
The R2 could also be a sorely wanted shot within the arm. The carmaker reported $1.3 billion in income and an adjusted lack of $667 million in the newest quarter. Following two consecutive quarters of gross earnings—which means it made cash on every automobile bought, excluding mounted prices—gross earnings went destructive once more in Q2.
Beforehand, Rivian stated it anticipated a modest annual gross revenue this yr. Now it expects to roughly break even this yr on a gross revenue foundation, the corporate’s CFO, Claire McDonough, stated on Tuesday. Like different automobile firms, Rivian has been hit by wide-ranging tariffs and different shifting insurance policies. McDonough stated automobile manufacturing took a success in Q2 resulting from provide chain issues, pushed partially by altering commerce insurance policies.
On account of “a number of the current adjustments related to regulatory credit and its second quarter efficiency,” Rivian says it now expects to lose $2-2.25 billion this yr, up from its earlier steering of $1.7-1.9 billion. Republicans in Congress have eradicated penalties beneath federal Company Common Gas Economic system guidelines, eliminating the necessity for polluting automakers to purchase regulatory credit from EV makers like Rivian and Tesla.
Rivian expects its regulatory credit score gross sales to dry up in the remainder of 2025. McDonough stated Rivian expects $160 million in regulatory credit score gross sales this yr, down from its earlier projection of $300 million.
Contact the writer: Tim.Levin@InsideEVs.com
Up to date 5:20 pm with feedback from Rivian’s earnings name.
