Wednesday, March 22, 2023
News More Affordable Rivian R2 Models will Have to Wait Until 2026

More Affordable Rivian R2 Models will Have to Wait Until 2026

Rivian has had to push back its introduction of the R2 platform by at least two years.

  • The company had previously announced a range of new models built on a smaller platform called R2.

  • These models were supposed to arrive in 2024.

  • Negotiations surrounding the company’s future plant in Georgia could explain the delay.

Rivian is working to expand its business at the moment and a crucial part of its strategy is the introduction of the R2 model which will be smaller and more affordable than the current R1T and R1S.

Hinted at in 2019, these models were planned to be released in 2024, but this is not the case anymore. Indeed, the company recently announced that the introduction of the R2 platform will be pushed back to 2026.

According to Rivian, this decision has been taken due to negotiations relating to the automaker’s projected factory in Georgia, which was supposed to build these new models.

Also part of the company’s expansion plans, the Georgia factory was supposed to begin production of the R2 and R1 models in 2024, but a local judge warned the state about Rivian’s precarious financial situation.

Indeed, the automaker reported a loss of $1,72 billion in the third quarter of 2022 despite revenues of $536 million.

This means that Rivian has to keep relying on the $13,7 billion it raised in 2021 when it did its initial public offering in order to stay afloat.

Since adding a line of more affordable models (which could include three distinct models) was part of the company’s plans for viability, pushing it back by two years could leave Rivian in a compromised position.

Nevertheless, the brand’s executives are confident it will be able to fund activities through at least 2025, mainly due to a planned increase in sales and deliveries of the R1 models, of which 15,000 had been made between January and October of this year.

Let’s not forget that Rivian can also count on the support of Amazon since the internet giant ordered 100,000 units of the brand’s electric delivery vans and it is also its largest shareholder, with around 18% of the company’s stock.

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