It’s not often that a Bloomington-Normal severe weather event makes it into a quarterly earnings report closely watched by Wall Street investors. But it did Thursday.
Leaders with the electric automaker Rivian gave investors an update on the tornado that damaged a section of the new R2 plant in west Normal two weeks ago.
“I’m proud of the way our teams have rallied together to get production back up and running while we repair the damages,” said Claire McDonough, Rivian’s chief financial officer. “Despite the weather impact, our 2026 guidance remains unchanged. We continue to expect full-year deliveries of between 62,000 and 67,000 total vehicles across R1, R2, and our commercial vans.”
The new R2 — Rivian’s first mass-market vehicle — was the focal point of Thursday’s first-quarter earnings call. R2 production began last week in Normal. They’ll reach customers later this spring.
R2’s launch is high stakes for Rivian, which has faced major headwinds on its journey to becoming McLean County’s second-largest employer, including COVID, supply-chain disruptions, trade disputes and now a Trump administration that is openly hostile to EVs.
Rivian invested $1.5 billion on a major expansion in Normal to accommodate R2 production.
“By building R2 in Normal, we’re strategically leveraging our existing manufacturing footprint in Illinois to drive greater fixed-cost absorption across our entire vehicle portfolio,” McDonough said.
Rivian has not disclosed how many new Normal hires will be needed to support the ramp-up of R2 production. The company no longer discloses even how many people are working in Normal.
McDonough said R2 production will begin with one shift of workers, scaling up to two shifts by the end of 2026 “as we ramp toward our north star target of profitably delivering 4,000 vehicles per week in Normal.”
“Delivering a strong 2026 exit rate for R2 production and deliveries is a key focus for our team, as we believe it will directly translate into positive automotive gross profit for the business,” she said.
The R2 is a smaller, more affordable SUV that the company hopes will break through with mainstream car buyers. The first R2s will start at $57,990, although cheaper $45,000 versions will be available by the end of 2027.
Rivian leaders on Thursday shared specific design changes and sourcing strategies that allowed them to bring down R2’s “bill of materials,” including:
- Power conversion: Around 70% reduction in high-voltage cabling.
- Rear doors: Around 65% reduction in parts, and 55% savings from design optimization.
- Front windshield: Around 50% savings predominantly from sourcing leverage.
Gas prices and EV demand
New-EV sales are still depressed following the abrupt end of a $7,500 federal consumer tax credit last fall, NPR reported.
One variable that could help offset that reality is prolonged high gas prices caused by the war in Iran. The average price of gas in the U.S. hit a wartime high of $4.30 on Thursday, according to AAA.
During Thursday’s call, founder and CEO RJ Scaringe was asked whether Rivian has seen an increase in demand because of high gas prices.
“It’s hard to say ultimately what’s going to happen around demand with the impact of gas prices going up. Of course, it’s a consideration. We do see that manifest with what people are trading in [when they buy a Rivian]. We’re seeing more trades of gasoline vehicles and vehicles that are less efficient than what we’re building. We do see that on the rise, but a lot of folks are wondering how long fuel prices are going to stay high like this,” Scaringe said.
Georgia update
The R2 is being first built in Normal, though production will expand into a second now-under-construction plant in Georgia by late 2028. That work is happening with the help of a federal loan that was secured in the final days of the Biden administration, leading to some speculation about whether the Trump administration would try to revoke it.
Rivian leaders said Thursday the loan is moving ahead with what they called “strategic changes.” Instead of a $6.6 billion loan, it’s now $4.5 billion. Rivian now expects to draw on the loan by early 2027, subject to meeting certain conditions.
Georgia will now have an initial annual production capacity of 300,000 vehicles — up from 200,000 previously. That’s still more than the 215,000 capacity at the Normal plant. Rivian made 42,284 vehicles in Normal in 2025.
“The support of the Department of Energy for the $4.5 billion loan to build our Georgia facility enables Rivian to grow American jobs and establish stronger U.S. technology and manufacturing leadership while further scaling our customer base,” Scaringe said.
