Rivian Automotive delivered a record 19,248 vehicles in the third quarter, a 46% increase from the same period last year, as the rollout of its new R2 SUV gained momentum. The company reported this figure on October 2, marking its highest quarterly delivery total to date.
The R2 represents Rivian’s entry into a more affordable segment of the electric vehicle market. The automaker began sales with the top-tier model priced at $58,000, with plans to introduce lower-priced standard trims in early 2027. Production for the new SUV is ramping up at the company’s plant in Normal, Illinois. Executives stated on a July 30 call that R2 reservations were converting to orders at a rate significantly higher than internal expectations. They also noted that a significant portion of these buyers are first-time electric vehicle owners.
Despite the delivery record, Rivian’s automotive segment, which generated 71% of the company’s revenue in fiscal 2025, saw revenue decline by 14.6% from fiscal 2024. The company raised its 2026 delivery forecast by 3,000 units in July, setting a target range of 65,000 to 70,000 vehicles across its R1, R2, and commercial van lines. Management reaffirmed this range during its third-quarter reporting.
Financial performance remains a central focus for investors. Rivian’s shares have fallen 25% over the past three months, underperforming the S&P 500’s 3.4% gain over the same period. The stock currently trades 40.4% below its 52-week high. Valuation metrics show the company trading at 3.0 times its trailing twelve-month revenue, closely tracking the S&P 500’s multiple of 3.1. Rivian continued to operate at a loss over that period.
The production ramp for the R2 has introduced significant costs. Executives indicated that the ramp added approximately $100 million to the cost of revenue in the second quarter. They also warned that launch complexity would negatively impact automotive gross profit in the third quarter, though those specific results have not yet been released. The company is targeting positive gross profit on the R2 by the end of 2026.
Supply chain constraints continue to limit output. Rivian stated that its production is gated by its slowest-moving supplier. The company did not provide specific conversion rates for demo drives leading to orders, citing difficulty in measuring demand from an external perspective.
To support the expansion, Rivian raised approximately $1.3 billion through new share sales in July. This issuance diluted existing shareholders’ ownership proportions. The automaker recorded an automotive gross profit loss of $36 million in the second quarter, a substantial improvement from a $335 million loss in the same period a year earlier. This gross profit figure remains the key metric for assessing the financial viability of the R2 launch.