Rivian R2 production has started despite tornado damage to factory

Rivian has successfully begun production of its first customer-ready R2 SUVs at its facility in Normal, Illinois, shortly after facing significant damage from an EF-1 tornado. The tornado struck the southern end of the plant, tearing off parts of the roof and causing structural damage. Despite these challenges, Rivian's founder and CEO, RJ Scaringe, assured Bloomberg Television on Wednesday that the rollout of the R2 remains on schedule, a critical factor for the company's future. Scaringe noted that the last few days have involved intensive efforts to adapt operations, stating, "The tornado went through the south end of the plant, and ripped the roof off the building, and knocked down some of the plant as well, and so the last 72 hours have been around the clock." He emphasized that while Rivian has had to alter its logistics for material handling, there will be no changes to the overall production plan. While Scaringe did not specify when the first R2 deliveries would commence, Rivian has indicated that the initial shipments are expected to take place before the end of the first half of 2026. The production of the R2 represents a significant milestone for Rivian, as this model is aimed at the mass market with a more affordable price point compared to the company's existing R1 electric vehicles. Rivian has high hopes for the R2, projecting deliveries between 20,000 and 25,000 units by the end of 2026. Achieving these numbers would position Rivian as one of the fastest-growing new electric vehicle manufacturers in the U.S., only behind Tesla's Model Y. However, the launch of the R2 comes with a higher price tag than previously advertised. The starting price for the launch edition R2 is set at $57,990, while a more economical variant priced at $53,990 will be available later this year. The company does not expect to offer an R2 under $50,000 until the first half of 2027, with a true base model potentially debuting in late 2027, contingent on pricing stability. Rivian's initial announcement in March indicated that the base model would begin “around $45,000,” a shift from earlier promotional content that suggested a starting price at that figure.