Thursday, electric vehicle maker Rivian announced it would be halting plans to build a $5 billion new factory in Georgia as it prepares to launch a new vehicle at a lower price point. The announcement means the second-largest economic development project in Georgia’s history may be on the rocks. 

In a filing, the company said that the move would save more than $2.25 billion by moving production of the upcoming R2 model to an already operational plant in Illinois. Rivian is planning to begin shipping the R2 SUV in 2026.

The announcement led Rivian stock to rally around 16 percent. The company’s chief executive, RJ Scaringe, said that despite the announcement the Georgia project remains important to the business.

Late last month the company had announced layoffs and said that it planned to keep production flat this year, which fell short of expectations for the company.

The R2 is supposed to enter the market starting at $45,000, which is significantly less than the company’s comparable models, which begin at $75,000 and below the average cost of a new car in America.

Rivian’s largest shareholder is Amazon, which buys electric vans which are produced at the company’s plant in Normal, Illinois.

The news comes as there are some signs that demand for new electric vehicles might be leveling off. In 2022, a First Insight survey found that 14 percent of Americans were considering buying an EV. Today fully electric vehicles make up just around 8 percent of American car sales, according to Forbes.