Rivian Automobile beat Wall Street’s expectations for the fourth quarter on Thursday and said it was targeting a significant increase in vehicle deliveries this year, but the automaker also warned it would continue to lose money as it launches its crucial next-generation vehicle, the R2.
Rivian’s forecast for 2026 includes an increase in vehicle deliveries between 62,000 and 67,000 units, which would represent an increase of 47 to 59 percent compared to 2025. This increase is expected to be supported by the launch of the R2 SUV during the second quarter.
Rivian CEO RJ Scaringe told CNBC’s Phil LeBeau on Thursday that the R2 is expected to account for the company’s “majority of volume” by the end of 2027, as it ramps up production at its sole factory in Normal, Illinois.
The electric vehicle maker also said it expects 2026 adjusted pre-tax losses of between $1.8 billion and $2.1 billion and capital expenditures of between $1.95 billion and $2.05 billion. That compares to nearly $2.1 billion in adjusted pretax losses and $1.7 billion in capital spending last year.
Scaringe described 2025 to investors on Thursday as a “foundational year” for Rivian, while saying 2026 would mark “an inflection point” for the company.
Shares of Rivian rose more than 20% in pre-market trading Friday after closing at $14, down about 5%.
Here’s the company’s fourth-quarter performance compared to average estimates compiled by LSEG:
- Loss per share: 54 cents adjusted versus expected loss of 68 cents
- Income: $1.29 billion versus $1.26 billion expected
Rivian’s full-year 2025 revenue, including $1.7 billion in the fourth quarter, is up 8% from 2024’s $4.97 billion.
The company managed to achieve its first annual gross profit, closely watched by investors, of $144 million in 2025, including $120 million in the fourth quarter. That’s because its software and services joint venture with Volkswagen offset $432 million in losses from its auto business last year.
This year’s gross profit may not be as successful, with Rivian CFO Claire McDonough describing it as a “transitional year” as it ramps up R2 production.
Investors view gross margin as a key indicator of a company’s profitability before operating expenses, interest and taxes.
Rivian’s net loss last year was $3.6 billion, an improvement from a loss of $4.75 billion in 2024. That includes an $804 million loss in the fourth quarter, accelerated by a decline in profits from the sale of regulatory credits, expected after the Trump administration’s changes to federal fuel economy and emissions standards.
Rivian ended the fourth quarter with $6.59 billion in total liquidity, including nearly $6.1 billion in cash, cash equivalents and short-term investments.
This is necessary capital for Rivian. This year is crucial for the automaker as it attempts to deliver on its promises of technological advancements and improved profitability with the R2.
The roughly $45,000 mid-size vehicle, by Rivian, is expected to cut construction material costs in half, reduce production complexity and significantly increase demand and sales.
Rivian said the R2 is expected to be initially produced by one team, followed by a second team by the end of this year. The company said additional details about the R2 by model, such as pricing, options and more, will be available on March 12.
Rivian made significant progress with its first-generation R1 pickup and SUV, but the market for these pricey electric vehicles, both of which start in the $70,000s, has slowed. It also continues to produce a 100% electric delivery van, historically purchased by its first shareholder, Amazon.