Rivian Automotive, Inc. announced on Wednesday that it has commenced production of the all-new R2 electric vehicle at its manufacturing facility in Normal, Illinois.

The start of production represents a critical milestone for the company ahead of scheduled customer deliveries, which are set to begin later this spring. Investors are expected to closely monitor the company's production ramp-up in the foreseeable future.

The R2 is a redesigned, lower-priced electric vehicle that bears a strong resemblance to its flagship R1 SUV model. Rivian anticipates that the R2 will attract a broader base of buyers and help fulfill the company's pledge to reduce costs and achieve profitability in the coming years.

The first R2 midsize vehicles to roll off the production line are performance editions priced at $58,000. These initial units come equipped with a "Launch Package," which includes an estimated range of 330 miles, dual-motor all-wheel drive, special configurations, and "lifetime" access to the company's Autonomy+ advanced driver-assistance system.

Rivian has been promoting a more affordable base model of the R2 with a starting price of $45,000. However, the company has indicated that this lower-margin variant will not be available until late 2027. All of Rivian's current vehicle models have starting prices exceeding $70,000.

This announcement of the R2's production start comes less than a week after a tornado caused damage to parts of the factory used for R2 component storage and logistics.

Rivian is scheduled to report its first-quarter financial results on April 30, at which time it will also provide investors with an update on R2 production progress.