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To accommodate R2 production, Rivian is constructing a new 1.1 million square-foot building for body shop and general assembly operations, along with additional structures for paint, battery, and material flow.
Rivian Automotive Inc.’s stock (RIVN) ended Tuesday 1.4% higher, extending gains into a third session, amid a broader market uplift.
When the market opens on Wednesday, investors will have more cause for cheer as the electric-vehicle maker confirmed a key update: deliveries of its more affordable R2 model will start in 2026.
“We are launching R2 from our existing 4.3 million square-foot manufacturing plant, where we already build R1 and our commercial vans,” Rivian said in an update on its website.
Once the expansion is complete, the Normal facility in Illinois will be able to produce up to 215,000 total units annually.
To accommodate R2 production, Rivian is constructing a new 1.1 million square-foot building for body shop and general assembly operations, along with additional structures for paint, battery, and material flow.
“Despite the Illinois winter, construction has progressed well. Shortly, we expect the roof work to be complete and in some areas the interior work has already begun,” the company added.
On Stocktwits, sentiment for Rivian flipped into the ‘bullish’ zone as retail investors pinned hopes on the company capitalizing on a larger rival’s recent struggles.
“Who else thinks the R2 & R3 are going to sell off the charts in Europe? With Tesla wavering, the European market is going to take Rivian to the next level,” said one user.
Another posted: “Just a friendly reminder R2 is half the cost of R1 to manufacture and with well over 100k reservations including me then you know what’s next.”
According to data released on Tuesday, Tesla registrations in Europe dropped 40% in February and 42.6% year-to-date from a year earlier.
To prepare for R2 production, Rivian plans to shut down its Illinois factory for about a month in the year's second half.
The R2 is expected to be priced around $45,000 to compete with Tesla's Model Y.
However, some analysts are not very bullish on Rivian. Last week, Piper Sandler downgraded the stock and cut its price target, citing minimal near-term growth and significant challenges ahead.
While the research firm acknowledged potential catalysts like the R2 launch and possible joint venture deals, it warned that Rivian faces “lots of heavy lifting” in the meantime.
Rivian stock has shed more than 7% this year but is up nearly 16% over the past 12 months.
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