Rivian Pausing Georgia Plant

[virgnia_rivian]

Total expected Normal capacity following R2 launch and plant changes: 215,000 units of total annual capacity across R1T, R1S, EDV, RCV, and R2.

SEC Filing:
https://www.sec.gov/ixviewer/ix.htm...01874178/000187417824000016/rivn-20240307.htm

"Rivian Automotive, Inc. unveiled its new midsize platform and announced its intention to begin production of its first midsize vehicle in its existing Normal, Illinois manufacturing facility."

More details:
https://www.sec.gov/Archives/edgar/data/1874178/000187417824000016/ex-991r2reveal.htm

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[agame32]

Press Release linked in above SEC filing:
https://www.sec.gov/Archives/edgar/data/1874178/000187417824000016/ex-991r2reveal.htm

Excerpt…
R2 Production to be Launched in Normal, Illinois

To enable R2 to be launched earlier and with a considerable reduction in the capital required for its launch, Rivian plans to start production of R2 in its existing Normal, Illinois manufacturing facility. Beyond significantly reducing the amount of capital needed to bring R2 to market, the company believes this approach considerably reduces risk to the launch and associated ramp; efficiently leverages its existing manufacturing and operations teams; and expands the total capacity for the site to 215,000 units per year. Rivian’s Georgia plant remains an extremely important part of its strategy to scale production of R2 and R3. The timing for resuming construction is expected to be later to focus its teams on the capital-efficient launch of R2 in Normal, Illinois.

To summarize:
–Improved capital efficiency: Total savings estimated to be over $2.25 billion as compared to the original forecast of launching the first line of R2 production at Rivian’s Georgia site. The savings are expected to come from capital expenditures, product development investment, and supplier sourcing opportunities.
–Improved cash visibility: Cash, cash equivalents, and short-term investments expected to be sufficient to fund operations through the start of R2 production.
–R2 planned start of production: The timing has been pulled forward to now be in first half of 2026.
–Total expected Normal capacity following R2 launch and plant changes: 215,000 units of total annual capacity across R1T, R1S, EDV, RCV, and R2.

 

[DuoRivians]

Monday morning quarterbacking, but Rivian should have done this plan a long time ago. The stock price would be higher too.

 

[manitou202]

They will likely offer lower cost options of the R1T and R1S in the future.

The R1T (at least for now) remains their only truck. Still unique.

The R1S will always have demand because of the third row.

 

[agame32]

215,000 units per year is #HUGE

 

[Milermore]

- R3 - sub-compact hatchback

R3 would be a great European car also.

 

[virgnia_rivian]

Monday morning quarterbacking, but Rivian should have done this plan a long time ago. The stock price would be higher too.

I think they were expecting R1 and EDV to be at capacity in Normal, hence making the GA factory a necessity. They also didn't know we'd be in the middle of extremely high interest rates weighing on all automakers. I think this will be a good move in the near term and set them up for greater success when GA is opened.

 

[moosehead]

GA needs to get it’s sheit together, put together MOAR incentives, fast track their backwater approval and permitting, and beg Rivian to carry forth.

Notice served to all other US municipalities - roll out the farcking red carpet.

No offense intended.

 

[BigSkies]

–Improved capital efficiency: Total savings estimated to be over $2.25 billion as compared to the original forecast of launching the first line of R2 production at Rivian’s Georgia site. The savings are expected to come from capital expenditures, product development investment, and supplier sourcing opportunities.
–Improved cash visibility: Cash, cash equivalents, and short-term investments expected to be sufficient to fund operations through the start of R2 production.

This is the biggest news right here.

The change in plans gives them enough cash to get into mid 2026. They should have a full year of operating Normal at postive gross margins (assuming that guidance isn't changing) and be able to raise a much smaller amount of capital closer to the R2 launch.

This gives me a lot more confidence in the capital markets side of Rivian and their ability to thrive.

There will still be questions about the GA plant and capital to be raised. But it's a much more solvable problem.

 

[Dark-Fx]

Monday morning quarterbacking, but Rivian should have done this plan a long time ago. The stock price would be higher too.

Pivoting takes a long time and they had no idea the Georgia plant delays would be as extensive as they were. It's telling that it doesn't really seem to be pulling their current timeline forward at all, just aiming to save cash doing it this way.

 

[Honey]

It totally makes sense why they got rid of the r1s explorer 5 seater option.

 

[manitou202]

Makes sense to use Normal as essentially a pilot plant to dial in manufacturing and assembly of the R2, then move to GA once the process is optimized. First year of production will likely be well under 100k units, and I believe they have excess capacity at Normal anyway.

 

[DuoRivians]

Pivoting takes a long time and they had no idea the Georgia plant delays would be as extensive as they were. It's telling that it doesn't really seem to be pulling their current timeline forward at all, just aiming to save cash doing it this way.

If the timeline is roughly the same and Rivian is saving $2B by producing in Normal first, why didn’t they start this from the beginning?

What was the upside of the original GA plan then? This pivot to Normal only seems to have upside

 

[Dark-Fx]

If the timeline is roughly the same and Rivian is saving $2B by producing in Normal first, why didn’t they start this from the beginning?

What was the upside of the original GA plan then? This pivot to Normal only seems to have upside

Full Capacity at Normal is still significantly less than GA. Overall the rate of expected growth is way slower under this pivot.

 

[virgnia_rivian]

Full Capacity at Normal is still significantly less than GA. Overall the rate of expected growth is way slower under this pivot.

Correct. RIVN also wasn't expecting AMZN to drag out EDV deliveries and the R1 i likely feeling the pressure of high interest rates with slower sales. This move gets the lower price R2 out into the market and gives RIVN a cushion.

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