RIVN Stock Defies Tornado Setback With R2 Production Kickstart

• Rivian is slated to start deliveries of the R2 this spring.
• The R2, whose entry level variant is expected to start at around $45,000, is expected to compete against Tesla’s best-selling Model Y SUV in the mass market EV segment.
• While the midsize SUV will initially be manufactured at Normal, Rivian expects its upcoming Georgia facility to provide additional capacity in time.

EV maker Rivian Automotive (RIVN) has reportedly begun production of its R2 SUV at its factory in Illinois — a move expected to propel sales volume, with deliveries starting in spring.

Shares of the company traded 5% higher at the time of writing.

Reuters reported on Wednesday, citing Rivian CFO Claire McDonough, that the company has encouraging reservation numbers for the R2 product.  

"We'll start to invite customers to begin to configure their vehicles in the June time frame. So, ​we'll have better visibility at that point," the CFO reportedly said, while adding that R2 will cost the company less than half as much as its flagship R1 vehicle once production scales in 2027.

However, initially, R2 will weigh on margins before aiding them, she added. The company is also watching out for its supply chain to spot any disruptions early, COO Javier Varela told Reuters. Rivian is looking to deliver about 22,000 to 23,000 of its new vehicle model this year.

Recent Setback

The clarification from the company comes on the heels of media reports that a recent tornado damaged part of the company’s factory in Normal, Illinois.

CEO RJ Scaringe reportedly told employees in a message on Sunday that a tornado touched down on the plant, impacting areas which were being used for parts storage and logistics for Rivian’s upcoming R2 SUV.  

Upcoming R2

Deliveries of the smaller, more affordable R2 midsize SUV at the plant is slated to start in Spring this year.

The R2, whose entry level variant is expected to start at around $45,000, is expected to compete against Tesla’s best-selling Model Y SUV in the mass market EV segment. However, the company will start deliveries with the more premium Performance variant with a launch package which will have a starting price of $57,990. The entry level variant is slated to arrive only in late 2027.

Rivian’s current lineup, including its R1T truck and R1S SUV, cater to a more premium customer base with a starting price of over $70,000.

While the midsize SUV will initially be manufactured at Normal, Rivian expects its upcoming Georgia facility to provide additional capacity in time.

How Did Retail Traders React?

On Stocktwits, retail sentiment around RIVN stock rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

A Stocktwits user expressed optimism, noting that they put down a reservation for R2 two years back.

Another opined that the new and upcoming midsize vehicle will provide Rivian with a larger total addressable market provided that the market for more premium cars is “too small” to have any real value on the stock.

RIVN stock has gained 58% over the past 12 months.

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