Rivian Halts Georgia Plant Construction, To Launch R2 SUV In Illinois Facility – Ross Gerber Terms It The ‘Right Strategy’

California-based EV maker Rivian Automotive (NASDAQ:RIVN) said on Thursday that it would halt the construction of its planned $5 billion plant in Georgia in a bid to cut costs.

The company now intends to launch its new R2 vehicle at its existing facility in Normal, Illinois.

What Happened: The company was initially eyeing the start of production of its newly unveiled R2 SUV at its upcoming factory in Georgia. But the decision to launch the vehicle at its existing factory, the company said, will enable the vehicle to be launched earlier and save about $2.25 billion in capital over an undefined period, including savings in capital expenditures and product development investment.

However, the company noted that its Georgia plant is “extremely important” to its strategy of scaling R2 and R3 CUV production, and construction will resume at a later point in time.

Ross Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management, termed the decision to halt construction at the Georgia plant the “right strategy.”

“I like the direction and now they need to deliver,” the investor wrote on X, formerly Twitter. Gerber ordered himself a Rivian R1S SUV a few months back.