Rivian Automotive The company said Thursday that fourth-quarter sales beat Wall Street expectations and that it is targeting a significant increase in deliveries this year, but the company also warned that losses will continue as it launches its important next-generation R2 car.
Rivian’s 2026 outlook includes increasing deliveries to 62,000 to 67,000 vehicles, an increase of 47% to 59% compared to 2025. This increase is expected to be driven by the launch of the R2 SUV in the second quarter.
Rivian CEO RJ Scaringe told CNBC’s Phil LeBeau on Thursday that R2 is expected to become a “major portion of the production” of the business by the end of 2027 as the company ramps up production at its only plant in Normal, Illinois.
The electric vehicle maker also said it expects adjusted pre-tax losses in 2026 to be between $1.8 billion and $2.1 billion, with capital expenditures between $1.95 billion and $2.05 billion. By contrast, last year’s adjusted pretax loss was approximately $2.1 billion and capital expenditures were approximately $1.7 billion.
Scaringe told investors Thursday that 2025 will be Rivian’s “founding year,” while 2026 will mark a “tipping point” for the company.
Rivian stock rose more than 15% in after-hours trading Thursday and closed about 5% lower at $14.
Here’s how the company performed in the fourth quarter compared to average estimates compiled by LSEG:
Loss per share: 54 cents adjusted, 68 cents expected Lost earnings: $1.29 billion, $1.26 billion expected
Rivian’s full-year 2025 revenue, including $1.7 billion in the fourth quarter, increased 8% compared to 2024’s $4.97 billion.
The company could hit its first annual gross profit, which investors are looking at, of $144 million in 2025, including $120 million in the fourth quarter. This was driven by its software and services joint venture with Volkswagen, which offset $432 million in losses from its auto business last year.
Rivian’s CFO Clare McDonough has described this year as a “transition year” as R2 ramps up production, and gross margins this year may not be as fruitful.
Investors look at gross profit as a key indicator of a company’s profitability, excluding operating expenses, interest, and taxes.
Rivian’s net loss last year was $3.6 billion, an improvement from a $4.75 billion loss in 2024. This included an $804 million loss in the fourth quarter, which accelerated the decline in revenue from the sale of regulatory credits that was expected after the Trump administration’s changes to federal fuel economy and emissions standards.
Rivian ended the fourth quarter with total liquidity of $6.59 billion, including approximately $6.1 billion in cash, cash equivalents and short-term investments.
Rivian needs money. This year is a critical year for automakers as they seek to deliver on R2’s promise of technological advancement and improved profitability.
Rivian says the approximately $45,000 mid-size vehicle is expected to cut construction material costs in half, reduce production complexity and significantly increase demand and sales.
Rivian said the R2 will initially be produced in one factory shift, followed by two shifts by the end of this year. The company said that model-by-model R2 details, including pricing and options, will be released on March 12.
Rivian made important strides with its first-generation R1 pickup and SUV, but the market for these expensive EVs, which both start in the $70,000 range, is slowing. The company also continues to produce all-electric delivery vans, which have historically been purchased by its largest shareholder. Amazon.
