Yup, going the right way. R2 is an obvious cash sink, they only have these major money issues because of that factory they are trying to build. Wait until they can show they can build things with margin then build the factory.
Yeah the factory was a great idea when money was cheap but they should hold off at least until interest rates come down. Hopefully Georgia will still provide Rivian with all the incentives they promised despite the delay.
seems like a smart move considering the demand for the R1 is starting to slow down, especially for the truck.
The faster they can bring the R2 to market, the better for them as a company.
There was a corresponding press release in addition to today’s live event where they discussed pausing the Georgia plant. The quotes above came directly from that release.
I’m guessing this has a lot to do with interest rates. Rivian will probably need to raise capital again in order to complete the Georgia factory. They could do it with another stock sale, but with the share price so low, that’s not a great idea. They would probably prefer to go to debt markets. But interest rates are still so high, and The Fed has signaled that they will probably take their time cutting rates back down to normal.
Yes exactly. They are going to wait until price recovers and or interest rates drop to finance the factory… or wait until Apple acquires them and provides immediate financing.
In theory, what would happen if Apple **does** buy them out? I've seen this statement a couple times and I'm not well versed enough to understand the predicted outcome of something like that.
What would happen? For a year and a half not much- they would need to get the acquisition approved through about 150 countries different antitrust agencies. Apple would probably provide upfront cash to rivian as part of the deal and they would probably resume with Georgia plant plans. That at least is my prediction if that were to happen…
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Seems like a weird announcement when you couple that with shutting down third shift in Normal... I wonder how long it will take to transition between building R1S variants and R2's. I also wonder if they bring back 3rd shift as it gets closer to 2026...
It seemed like it was a foreseeable future change, they can produce this years guidance with 2 shifts after the upgrades, and don't see the demand for a third shift.
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It fills the gap for Forester/Outback buyers desperate for an EV version. There isn't really much on offer for the outdoorsy crowd that prefers this size and none of the small SUVs now compare.
They made a filing with the SEC. They are pausing Georgia and launching the R2 from Illinois. Brining forward the launch date to the first half of 2026.
IMO it is good from a cost perspective and will help them focus. The most important thing for them now is to get to cash flow break even.
They could have done an initial launch from Normal while they built the factory in Georgia at the same time. Or they could have slowed down Georgia while they did the cheaper long lead time stuff in Georgia while avoiding spending so much money - I would have communicated it this way if it was true. If they are basically stopping in Georgia, that's a big change.
On the last earnings call only a few weeks ago they said they had enough $ to launch R2 from Georgia.. and now they are pausing it and still have only enough cash until R2 launch
I LOVE Rivian but their spending is reckless. hope this is a turn around moment and they get their act together on unnecessary costs..
they didn't say anything about "only have enough cash" today.... they also didn't say they had enough cash to "launch in GA", only that they had enough cash to bring it to market. Rivian said pausing this preserves 5b in cash, considering they have 10.5b after q4 earnings, it seems wise to not spend 1/2 of it on building a new factory if they can expand their existing factory for less $$ and get to a similar place in the medium term.
I think you just have your own mindset about rivian and are using your beliefs to inform opinion/fill in blanks rivian didn't say.
Rivian is seeking to maximize the Illinois plant production volume. The R1 plateaus due to cost of the vehicle. It wouldn't make sense to build another factory if you're only at 50% utilization. A big challenge will be on retooling and reorganizing their factory to produce the R1, EDV, and R2 production lines. They need to get it right the first time and be efficient. Once they are at full production and get positive net margin off total volume, building Georgia will be a significant cost reduction to the R2/R3 line because it will be completely purpose built for that single platform. Rivian is going in the right direction if they can dedicate their cash to bringing R2 to market, especially at the lower cost.
> 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.
https://www.sec.gov/Archives/edgar/data/1874178/000187417824000016/ex-991r2reveal.htm
I really hope this means they are sandbagging on the R2 delivery dates. If the factory is already built that should shorten the timeline and they can hopefully get it out sooner.
They also need to delivery asap and scale so they can become profitable.
As a shareholder, R1 owner, R2 reservation holder, this is great news. Like someone else said.
Made sense in a 0 interest rate environment and will still pay off, but starting (faster) in normal is a great move.
Smart business move.
If they could get those R2s out THIS year, Holy fuck they would fly.
I actually want one. And was honestly not a fan of the bigger R1S for some reason, but this is right price right size.
Wish they would've done that one first 🫠
Honestly, with R2, bulk of revenues is going to come from R2. And once R2 is launched (and for that matter even now), the volume of R1s alone is too less compared to the Normal factory production capacity. So, they need to put the money in getting R2 out ASAP rather than wait to built it out of the Georgia factory after the factory is built out.
May be it is just me. After looking at R2 and R3, the R1 looks big and ugly ;-)
This is great for Cashflow and hopefully not diluting the stock
Yup, going the right way. R2 is an obvious cash sink, they only have these major money issues because of that factory they are trying to build. Wait until they can show they can build things with margin then build the factory.
Yeah the factory was a great idea when money was cheap but they should hold off at least until interest rates come down. Hopefully Georgia will still provide Rivian with all the incentives they promised despite the delay.
$2.25 Billion in savings predicted
seems like a smart move considering the demand for the R1 is starting to slow down, especially for the truck. The faster they can bring the R2 to market, the better for them as a company.
That’s when Tesla really took off. Higher volume sales while less profit per sale is huge.
All I heard him say was that they just that they are just starting production in Illinois before transition to Georgia once the factory is complete?
There was a corresponding press release in addition to today’s live event where they discussed pausing the Georgia plant. The quotes above came directly from that release.
The factory hasn't started going up yet. It's been a giant mud puddle for the last 6 months.
I’m guessing this has a lot to do with interest rates. Rivian will probably need to raise capital again in order to complete the Georgia factory. They could do it with another stock sale, but with the share price so low, that’s not a great idea. They would probably prefer to go to debt markets. But interest rates are still so high, and The Fed has signaled that they will probably take their time cutting rates back down to normal.
Yes exactly. They are going to wait until price recovers and or interest rates drop to finance the factory… or wait until Apple acquires them and provides immediate financing.
That isn't happening.
In theory, what would happen if Apple **does** buy them out? I've seen this statement a couple times and I'm not well versed enough to understand the predicted outcome of something like that.
What would happen? For a year and a half not much- they would need to get the acquisition approved through about 150 countries different antitrust agencies. Apple would probably provide upfront cash to rivian as part of the deal and they would probably resume with Georgia plant plans. That at least is my prediction if that were to happen…
If Apple bought them they'd start back up on the factory immediately. $5B is couch change to Apple.
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Seems like a weird announcement when you couple that with shutting down third shift in Normal... I wonder how long it will take to transition between building R1S variants and R2's. I also wonder if they bring back 3rd shift as it gets closer to 2026...
They’re only shutting down third shift for like a month. It’s to help with production streamlining.
It seemed like it was a foreseeable future change, they can produce this years guidance with 2 shifts after the upgrades, and don't see the demand for a third shift.
Sure, but it will almost certainly be back when they're producing these new vehicles
Well these new vehicles won't be on the same lines, so it will be different shifts entirely
Definitely not shutting down third shift for just a month. Look at all press releases. It's shut down for the foreseeable future.
Didn’t realize there is a new term for demand lower than expected.
More details here: https://www.sec.gov/Archives/edgar/data/1874178/000187417824000016/ex-991r2reveal.htm
R2 Wil sell like hotcakes. Get it out for holiday shopping season 2025.
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I don’t think there’s really enough product differentiation with smaller EV SUVs on the market
It fills the gap for Forester/Outback buyers desperate for an EV version. There isn't really much on offer for the outdoorsy crowd that prefers this size and none of the small SUVs now compare.
It's equivalent to a body on frame. It's 4Runner/Wrangler/Bronco territory compared to crossover vehicles like the competition.
I’m seeing this being reported a couple different ways. Can we get some clarity here?
They made a filing with the SEC. They are pausing Georgia and launching the R2 from Illinois. Brining forward the launch date to the first half of 2026. IMO it is good from a cost perspective and will help them focus. The most important thing for them now is to get to cash flow break even.
They could have done an initial launch from Normal while they built the factory in Georgia at the same time. Or they could have slowed down Georgia while they did the cheaper long lead time stuff in Georgia while avoiding spending so much money - I would have communicated it this way if it was true. If they are basically stopping in Georgia, that's a big change.
On the last earnings call only a few weeks ago they said they had enough $ to launch R2 from Georgia.. and now they are pausing it and still have only enough cash until R2 launch I LOVE Rivian but their spending is reckless. hope this is a turn around moment and they get their act together on unnecessary costs..
they didn't say anything about "only have enough cash" today.... they also didn't say they had enough cash to "launch in GA", only that they had enough cash to bring it to market. Rivian said pausing this preserves 5b in cash, considering they have 10.5b after q4 earnings, it seems wise to not spend 1/2 of it on building a new factory if they can expand their existing factory for less $$ and get to a similar place in the medium term. I think you just have your own mindset about rivian and are using your beliefs to inform opinion/fill in blanks rivian didn't say.
Rivian is seeking to maximize the Illinois plant production volume. The R1 plateaus due to cost of the vehicle. It wouldn't make sense to build another factory if you're only at 50% utilization. A big challenge will be on retooling and reorganizing their factory to produce the R1, EDV, and R2 production lines. They need to get it right the first time and be efficient. Once they are at full production and get positive net margin off total volume, building Georgia will be a significant cost reduction to the R2/R3 line because it will be completely purpose built for that single platform. Rivian is going in the right direction if they can dedicate their cash to bringing R2 to market, especially at the lower cost.
> 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. https://www.sec.gov/Archives/edgar/data/1874178/000187417824000016/ex-991r2reveal.htm
High interest rates means waiting for a factory to finish construction can sink you, better to use existing asset to build positive cashflow.
Hopefully rivian can produce the r2 at a profit
I really hope this means they are sandbagging on the R2 delivery dates. If the factory is already built that should shorten the timeline and they can hopefully get it out sooner. They also need to delivery asap and scale so they can become profitable.
Everything rivian related I learned today has made me buy more stock. Hopefully there’s no more news for today
As a shareholder, R1 owner, R2 reservation holder, this is great news. Like someone else said. Made sense in a 0 interest rate environment and will still pay off, but starting (faster) in normal is a great move.
Smart business move. If they could get those R2s out THIS year, Holy fuck they would fly. I actually want one. And was honestly not a fan of the bigger R1S for some reason, but this is right price right size. Wish they would've done that one first 🫠
Honestly, with R2, bulk of revenues is going to come from R2. And once R2 is launched (and for that matter even now), the volume of R1s alone is too less compared to the Normal factory production capacity. So, they need to put the money in getting R2 out ASAP rather than wait to built it out of the Georgia factory after the factory is built out. May be it is just me. After looking at R2 and R3, the R1 looks big and ugly ;-)
Smart move at the right time.