Rivian posts a quarterly loss of $1.1 billion, yet persists with plans to manufacture the R2 SUV model.
Rivian, the electric vehicle manufacturer, has announced plans to transition its production lines to the R2 SUV model in September 2025, marking a significant step towards mass-market affordability. The company's expanded Normal, Illinois facility, where manufacturing equipment installation and facility expansions are currently underway, will serve as the primary production hub for the R2 once fully operational.
The Normal, Illinois plant, set to begin production in the first half of 2026, is expected to have an annual production capacity of 215,000 units for the R2 once fully operational. This ramp-up is critical for Rivian's strategy to achieve positive margins and profitability, leveraging a lower-cost R2 model.
In preparation for the transition, the plant will pause operations for about three weeks in September 2025. Rivian views the R2 as critical to its future profitability, and the company is already testing validation prototypes of the R2 SUV.
In addition to the Normal plant, Rivian plans to expand R2 production to a new factory in Georgia, expected to be operational by late 2027, with production and sales starting there around late 2028. Initially, the Normal plant will handle R2 manufacturing until then.
In the meantime, Rivian reported a quarterly revenue of $1.303 billion, a 5.1% increase year-over-year, despite posting an adjusted loss of $0.97 per share in Q2 2025, wider than expected. The company has revised its adjusted EBITDA loss projection for the full year to a range of $2.0 billion to $2.25 billion, up from the previously forecasted $1.7 billion to $1.9 billion.
Despite these challenges, Rivian remains optimistic about the R2's potential. The R2 is designed to deliver faster positive gross margins compared to the R1 lineup, and the company expects a delivery peak in Q3. Rivian has reaffirmed its full-year delivery target of 40,000 to 46,000 vehicles, and the R2 production line is scheduled to be commissioned in Q3.
The company attributed the production dip in Q2 2025 to preparation for upcoming 2026 model year vehicles and broader supply chain challenges. Rivian's shares fell nearly 4% in after-hours trading following the report release. However, the company remains focused on its mission to accelerate the world's transition to sustainable energy.
Sources: [1] Rivian Announces Second Quarter 2025 Financial Results. (2025, July 28). Retrieved from https://ir.rivian.com/news-releases/news-release-details/rivian-announces-second-quarter-2025-financial-results [2] Rivian's R2 SUV to be Produced at Expanded Normal, Illinois Facility. (2025, June 1). Retrieved from https://www.rivian.com/news/rivians-r2-suv-to-be-produced-at-expanded-normal-illinois-facility [3] Rivian to Pause Operations for Three Weeks in September to Accommodate Transition to R2 Production. (2025, June 2). Retrieved from https://www.autonews.com/electric-vehicles/rivian-pause-operations-three-weeks-september-accommodate-transition-r2-production [5] Rivian's Lower-Cost R2 Model Aims for Mass-Market Affordability. (2025, May 15). Retrieved from https://www.greencarreports.com/news/1133404_rivians-lower-cost-r2-model-aims-for-mass-market-affordability
The new factory in Georgia, planned for operation by late 2027, will also contribute to the production of the R2 SUV, with manufacturing and sales starting there around late 2028. In the finance sector, Rivian's strategy to introduce the lower-cost R2 model aims to achieve mass-market affordability, which is expected to improve the company's profitability in the automotive industry.
