On the Dash:
- Rivian is scaling production capacity to cut costs and support its lower-priced R2 strategy.
- Federal policy changes and softer EV demand are shaping near-term planning.
- Financial results show improving losses, but revenue mix pressures remain.
Rivian is set to increase initial production capacity at its Georgia plant by 50% to 300,000 units annually, the company said Thursday, as it works to lower per-unit costs and scale its upcoming R2 mid-sized SUV.
The automaker said in its press release that it remains on track to begin vehicle production at the Georgia facility in late 2028.
Rivian is expanding capacity as it prepares to scale the R2, a more affordable mid-sized SUV. The expanded Georgia footprint, combined with the existing 215,000-unit capacity at Normal, brings Rivian’s total planned manufacturing capacity to 515,000 units, which the company says is the scale needed to reach free cash flow positive.
To support the expansion, Rivian renegotiated its agreement with the U.S. Department of Energy (DOE), reducing its previously approved loan from $6.57 billion to $4.5 billion. The original loan was structured to support two phases of production totaling 400,000 units. The amended agreement covers one phase at 300,000 units. Rivian expects to begin drawing on the funding in early 2027, a year ahead of the original schedule.
In the first quarter, Rivian reported a net loss of $416 million, or 33 cents per share, improving from a year-earlier loss of $541 million, or 48 cents per share.
Notably, revenue rose 11% to $1.38 billion, exceeding analyst estimates of $1.36 billion. Automotive revenue declined 2% to $908 million, driven by a $100 million decrease in regulatory credit sales.
Rivian produced 10,236 vehicles and delivered 10,365 vehicles during the quarter at its Normal, Illinois, facility.
The company maintained its full-year delivery forecast of 62,000 to 67,000 vehicles.
