Rivian Revenue Jumps 38% as R2 Sales Surge

Rivian stock closed at $12.16 on Friday, marking a gain of more than 6% after the company released third-quarter financial results.

The Irvine-based electric vehicle manufacturer reported revenue of $2.15 billion for the quarter, a 38% increase compared to the same period last year. Vehicle deliveries rose by 46%, driven primarily by the launch of the R2 model in June. This performance followed a difficult year in which shares fell by more than 40%.

CEO RJ Scaringe stated that the company targets positive automotive gross profits by the end of 2026. Rivian reported an automotive gross loss of $80 million in the third quarter, down from a $130 million loss a year earlier. The reduction was attributed to higher delivery volumes and improved per-unit margins. The R2 became the company's best-selling vehicle by volume during this period.

Production and delivery numbers for the quarter showed 19,751 vehicles manufactured at the Normal, Illinois facility and 19,248 delivered. Rivian raised the lower bound of its full-year delivery guidance from 65,000 to 67,000 units. Morningstar analyst Seth Goldstein noted that this guidance increase signals a ramp-up in R2 production and suggests a path toward profitability.

The company is currently selling only the performance version of the R2 at a price of $57,990. This figure is lower than the company's typical price point of approximately $77,000. A Premium version is scheduled for release in late 2026 at around $54,000, with a Standard version priced at $44,990 set to arrive in 2027. Rivian has also cut about 2% of its workforce following the initial deliveries of the new SUV.

Rivian continues to develop its self-driving technology. The R2 can be purchased with a universal hands-free driver assistance package. Scaringe said in a statement that the autonomy platform is progressing rapidly and is laying the foundation for a future defined by electric, autonomous, and AI-driven vehicles. Analyst Chris Pierce of Needham & Company said Rivian is closing the gap with Tesla while widening the distance from legacy automakers like GM and Ford.

Rivian has lost money since its founding in 2009 and recorded a $3.6 billion loss last year. The company is also expanding its charging network by adding more than 150 public EV chargers to Caruso properties, including The Grove and The Commons at Calabasas. Additionally, the e-bike startup Also, which was incubated within Rivian, launched publicly last year with a flagship product priced at $3,500.