The company asserts it will reach positive gross profits by the year’s end.
Rivian shared its first quarter earnings for 2026, offering insights into its financial status as it starts production for the essential R2 electric vehicle.
Rivian’s production and delivery report for the first quarter shows the sale of 10,365 vehicles, marking a 20% increase year over year. The production at its Illinois plant reached 10,236 vehicles, up 30% from the previous year. The company reaffirms its aim to sell 62,000–67,000 vehicles this year.
Revenue for the quarter was $1.38 billion, rising 11.3% from $1.24 billion in Q1 2025. Automotive revenue decreased by 1.5% to $908 million, while software and subscription services soared by 48.7% to $473 million. As EV sales slow, Rivian aims to boost revenue from digital products, like the Autonomy Plus package. Gross profits were $119 million, a 42% year-on-year drop.
Rivian is pinning hopes on the R2 vehicle to lift sales, especially after the removal of the federal $7,500 EV tax credit. The midsize SUV is key for Rivian’s future, securing financial stability while investing in new facilities and self-driving technology. The timely launch, with the first R2s available by June, is considered crucial.
Rivian achieved its first gross profit in 2025, largely by reducing costs, and remains confident in reaching positive gross profit margins by year-end 2026. It aims to sell over 20,000 R2s by then, despite a tornado damaging part of its facility in Normal this month.
Rivian has had a busy period, planning to develop its own AI chips and include lidar sensors in future R2 models for full autonomous driving. Last month, Rivian detailed the R2 rollout, starting with variants up to $57,000 for performance models. The base model, starting at $45,000, will be released at the end of 2027.
Additionally, Rivian reached a significant milestone in its software joint venture with Volkswagen, unlocking an extra $1 billion from the German automaker. VW is committed to investing $5.8 billion in Rivian, contingent on certain targets. The venture is creating a next-gen software platform, based on Rivian’s zonal architecture work, destined for VW brands like Audi, Scout, and Porsche.