(Bloomberg) — Rivian Automotive Inc. has made the surprising decision to halt the construction of a new multibillion-dollar factory in Georgia. This sudden change is part of the company’s cost-cutting measures as it prepares to introduce a more affordable electric vehicle.
The automaker revealed that this decision will result in savings of over $2.25 billion in capital expenditures. By shifting the production of the upcoming R2 model to an existing facility in Illinois, Rivian aims to expedite deliveries, with the first ones expected in the first half of 2026, earlier than initially planned. While this move has cast uncertainty over the high-profile factory project, CEO RJ Scaringe emphasized its continued importance to the company.
Following the announcement, Rivian’s stock saw a significant 13% increase, marking its largest gain since December. This comes after a year of more than 50% decline in the stock due to concerns about the company’s cash flow and consumer demand for its products.
In 2022, Rivian secured a $1.5 billion investment…
2024-03-07 16:26:09
Post from finance.yahoo.com