RIVN Stock Slips On Reported Tornado Strike At R2 SUV Facility

• According to the message sent out on Sunday night and viewed by CNBC, operations in the damaged area are expected to resume this week while the remaining portions of the plant continue to operate as planned. 
• The CEO also highlighted that there were no injuries as part of the incident and the company is assessing the damages.
• Deliveries of the smaller, more affordable R2 midsize SUV at the plant is slated to start in Spring this year.

Shares of Rivian Automotive Inc (RIVN) fell 2% on Monday after a media report that a tornado damaged part of the company’s factory in Normal, Illinois.

CNBC reported on Monday, citing a message sent by CEO RJ Scaringe to employees, 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. According to the message sent out on Sunday night and viewed by CNBC, operations in the damaged area are expected to resume this week while the remaining portions of the plant continue to operate as planned.

The CEO also highlighted that there were no injuries as part of the incident and the company is assessing the damages. More details will be shared as it becomes available, the CEO reportedly said.

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. 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 stayed within the ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

RIVN stock has gained 52% over the past 12 months. 

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