Rivian’s more affordable R2 pushed back until 2026

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Rivian alluded to ongoing negotiations over a vehicle plant to be built near Atlanta, Georgia as the cause of the delay. The US$5-billion plant, which would be Rivian’s second, was first announced in 2021. The automaker assumed construction would start in mid-2022, and that the first vehicles would begin production in 2024.

However, the project was stalled in September following a ruling by a local judge, who cast doubt about Rivian’s cash reserves, splashing cold water on whether the project would be viable. Rivian announced November 9 that it would continue to work with the state of Georgia and its Joint Development Authority to proceed with the plant.

The news comes as Rivian continues to plow through cash. For the third quarter, Rivian reported a net loss of US$1.72 billion on revenue of US$536 million. It also coincide with work on new models, and the company’s ramping up production of its existing models.

Rivian already offers the all-electric R1S SUV and R1T pickup truck, as well as a delivery van developed exclusively for Amazon. It said it built approximately 15,000 vehicles through September, and is on track to build 25,000 models in 2022. The automaker also said it remains “confident” in its ability to fund operations through 2025.