Rivian Pausing Georgia Plant

[DuoRivians]

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[Khaos]

I might as well throw this here. No R1 refreshes or changes to R1 were mentioned, right?

 

[bentsauce]

He didn't say Georgia was pausing, did he???

 

[BigE]

I might as well throw this here. No R1 refreshes or changes to R1 were mentioned, right?

I wouldn’t expect any R1 announcements until very close to launching, so as to not kill sales presently

 

[agame32]

The Georgia vs Normal comments/news were the biggest of the event, IMO. I’m surprised it’s not being talked about more.

 

[rbrak29]

I might as well throw this here. No R1 refreshes or changes to R1 were mentioned, right?

At least give the R1 the new steering wheel controls and the gloveboxes

 

[agame32]

He didn't say Georgia was pausing, did he???

Also trying to confirm his exact quote. I was too busy reserving stuff.

 

[bd5400]

He didn't say Georgia was pausing, did he???

Not in the livestream but apparently they released a company statement shortly thereafter regarding Georgia.

 

[itselectric]

It's what they should have done in the first place and, if I remember correctly, was the original plan.

Elon called this out a year or so ago. It's way too much capital to be spending right now. Glad they came to their senses.

 

[carsly]

At least they GET IT now. It's go big or go home time. Maximize your current facilities/operations/supply chain and get R2 out ASAP.

 

[rbrak29]

It's good news, but I need info on the R1, refreshed or not. Not one mention of R1. Once the R2 ships, will Rivian kill the R1T? R1S? I have $1000 down and waiting for more information.

 

[agame32]

At least they GET IT now. It's go big or go home time. Maximize your current facilities/operations/supply chain and get R2 out ASAP.

I can’t tell if the R3 news is truly going big, or some combination of distraction and desperation. I think it is wonderful and happy to know about it, but why now when there’s two years between now and even an accelerated R2 launch from Normal?

 

[Redline]

It's good news, but I need info on the R1, refreshed or not. Not one mention of R1. Once the R2 ships, will Rivian kill the R1T? R1S? I have $1000 down and waiting for more information.

Why would they kill the R1? They won't mention a refresh until closer to 2026 is my guess.

 

[P.S.Mangelsdorf]

It's good news, but I need info on the R1, refreshed or not. Not one mention of R1. Once the R2 ships, will Rivian kill the R1T? R1S? I have $1000 down and waiting for more information.

They're not killing R1. It's their flagship, they have said that over and over again.

If I remember correctly, when Normal was a Mitsubishi plant, it had a yearly capacity somewhere around 250k. They're currently building 50k, and have expanded parts of the plant.

In recent interviews and earnings calls, they have said that the updates to R1 coming this spring are both manufacturing efficiency and parts-sharing upgrades. My guess is that there will be a lot of hidden components of the R1 and R2 that are shared. We know things like drive units will be shared, and the wiring harnesses are closely related.

In short, the R2 means they can build the R1 more efficiently and get closer to profitability on each one.

 

[carsly]

I can’t tell if the R3 news is truly going big, or some combination of distraction and desperation. I think it is wonderful and happy to know about it, but why now when there’s two years between now and even an accelerated R2 launch from Normal?

I believe the R3 news is primarily for investors (current and needed in the near future). BMW survived for a very long time with effectively three sedans - the 3 series, 5 series and 7 series. Similar to Mercedes with the E class, S class and eventual C class.

To be seen as/valued as a "real" automaker Rivian needs to access multiple pockets of demand/customer segments in the adventure space. Targeting Subaru buyers with R3, Bronco Sport/Wrangler drivers with R2 and their existing demand with R1 shows that Rivian understands they need to show a path towards becoming an automaker with multiple products/segment. Think about this, depending on the R3 timing in ~ five years Rivian would have gone from zero vehicles to:
- EDV - for short-haul freight
- R1T - consumer/light-duty work pickup
- R1S - midsized SUV
- R2 - compact SUV
- R3 - sub-compact hatchback

R2/3 are the global vehicles (I'd argue mostly R3). But getting play in five demand pools in just five years would be impressive. Still have to get R2/3 from a stage with bright lights into people's driveways - but this is the roadmap they want to pitch to the next set of investors. Look, they need at least $5B in new cash to pull all of this off. Their valuation, before the reveal, was as low as it's ever been. They've put out a path and shined a light on it. If they can keep delivering R1's and ramp EDV's while preparing to build R2 in Normal they've shown they can be responsible stewards of additional capital. Brilliantly played IMHO.

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