Rivian begins R2 production despite factory tornado damage

Rivian has rolled its first customer-ready R2 SUVs off the production line at its factory in Normal, Illinois. The manufacturing milestone comes just days after the facility was hit by an EF-1 tornado that tore off part of the roof. Despite the severe weather damage, the electric vehicle manufacturer has successfully commenced production of the vehicle in the U.S.

During an interview with Bloomberg Television on Wednesday morning, founder and CEO RJ Scaringe addressed the storm’s impact. He noted that the company spent the last 72 hours working around the clock to manage the damage, which affected the south end of the plant. To keep production moving, the automaker has adjusted how and where it brings certain materials into the factory. Despite these operational adjustments, Scaringe stated that Rivian doesn’t expect any delays to the R2’s rollout. He emphasized that “we’re not making any changes to the plan” regarding the production roadmap. The company has previously stated that it will start shipping R2 SUVs before the first half of 2026 comes to an end.

The R2 is supposed to help the company finally reach profitability, serving as its first vehicle designed for mass-market customers. Rivian has big expectations for the vehicle’s rollout, telling investors that it expects to deliver between 20,000 and 25,000 of the SUVs by the end of 2026. If achieved, this volume would make the R2 one of the fastest-scaling new electric vehicles launched in the U.S., second only to competitor Tesla’s Model Y.

While the company spent years promoting a $45,000 price tag for the SUV, the initial launch pricing is higher. The pricing structure for the R2 rollout is scheduled as follows:

• Launch Edition: Starts at $57,990, which is nearly $13,000 more than the $45,000 price tag the company spent years promoting.
• Mid-tier Variant: A $53,990 variant is scheduled to arrive by the end of 2026.
• Sub-$50,000 Model: Rivian will not sell an R2 for under $50,000 until the first half of 2027.
• Base Model: A true base model starting at $45,000 is not expected to hit the market until late 2027, with the company recently stating the price will start around $45,000.

Why it matters

The R2 is Rivian’s first mass-market vehicle, representing a crucial pivot point for the company to move beyond niche luxury EVs and finally achieve profitability.