Rivian has revised its loan agreement with the Department of Energy and now plans to borrow $4.5 billion for its new factory in Georgia, down from the original $6.6 billion allocated. The company will access the loan earlier than planned, in early 2027, and aims to increase the Georgia plant’s initial capacity from 200,000 to 300,000 vehicles, which indicates strong expectations for the R2 SUV. This 50% capacity boost will lower unit costs and allow room for future expansion. Some capacity will produce R2 robotaxis for Uber, following a deal where Uber invests $300 million in Rivian and buys 10,000 autonomous R2 robotaxis for San Francisco and Miami by 2028. Uber may purchase 40,000 more R2 SUVs and invest up to $1.25 billion by 2031 if milestones are met. Rivian began work on the Georgia factory last year, with vehicle production expected by the end of 2028. Meanwhile, the R2 SUV is being produced at Rivian’s Illinois factory, with initial deliveries underway despite tornado damage. First customer deliveries are expected soon.
Rivian reported its first quarter of 2026 financials, generating $1.38 billion in revenue—$908 million from vehicle sales and $473 million from software and services—but automotive revenue was down 2% due to declining regulatory credits. The company narrowed its net loss to $416 million from $541 million last year, aided by a $506 million gain related to a Series A capital raise and deconsolidation of CEO RJ Scaringe’s startup Mind Robotics. Operating expenses and R&D costs rose, with the R&D budget increasing 20% to $458 million for R2 pre-production and autonomous vehicle technology development. Rising costs and increased capital spending negatively impacted Rivian’s free cash flow, which was a negative $1 billion, nearly double from last year.