A tornado damaged Rivian's Illinois factory, impacting a storage and logistics area for the upcoming R2 model. CEO RJ Scaringe confirmed the damage, which could delay the 2026 launch of the crucial electric vehicle and add pressure to the company's stock.
Rivian Automotive Inc.'s planned 2026 launch of its R2 electric vehicle faces potential delays after a tornado struck its Illinois factory over the weekend, damaging a section of the plant used for the upcoming model's parts and logistics.
"The tornado hit a new area of the plant being used for parts storage and logistics of its upcoming R2," Chief Executive Officer RJ Scaringe said in a message to employees on Sunday night.
The extent of the damage and the financial impact of the tornado on the Normal, Illinois facility have not yet been disclosed. The company has not yet commented on the specific impact on the R2 production timeline. The R2 is seen as a critical vehicle for Rivian's long-term growth, with the company aiming to ramp up production to compete in the mainstream EV market.
The production setback could add pressure on Rivian's stock. Investors are concerned about production delays for the highly anticipated R2 model, potential cost overruns from repairs, and uncertainty regarding the company's near-term production capacity. The R2 is expected to be a smaller, more affordable SUV, crucial for Rivian to compete with Tesla Inc.'s Model Y and other mainstream electric vehicles.
This article is for informational purposes only and does not constitute investment advice.
