Rivian R2 tops sales, profit falls

Rivian’s financial position improved in the third quarter of 2026, driven by a surge in vehicle deliveries and expanding software revenue. The company reported total revenue of $2.155 billion, a 38 percent increase from the same period in 2025. This growth was fueled by both higher automotive sales and a 45 percent jump in software and subscription income.

The R2 electric vehicle emerged as the company’s best-selling model by volume for the first time. It outsold the R1T, R1S, and the Electric Delivery Van. Rivian produced 19,751 vehicles in the quarter, an 85 percent year-over-year increase. Deliveries reached 19,248 units, a 45 percent rise. The company does not publish a detailed breakdown of sales by specific model.

Despite the volume increase, automotive gross profit remained negative. Rivian reported a $80 million loss in automotive gross profits for the quarter. This figure represents a $50 million improvement over the $130 million loss recorded in the third quarter of 2025. The reduction in losses was attributed to higher sales volumes and improved per-vehicle margins. The company also recorded revenue from pollution credit sales and a government tariff refund.

Software and services revenue contributed $605 million to the top line, up 45 percent year over year. This segment generated $256 million in profit, a $102 million increase from the previous year. The division maintained a 42 percent profit margin. A major portion of this income came from licensing technology to Volkswagen and from customer subscriptions for the Autonomy Plus driving package.

CEO RJ Scaringe commented on the shift in the company’s product mix. “We had great results with R2 becoming our best selling vehicle by volume in the third quarter,” Scaringe said in a statement. He added that customer and media feedback on the new model has been exceptional.

The R2 was designed as a higher-volume, mass-market vehicle to complement Rivian’s more expensive legacy models. The company plans to launch lower-priced trims to further expand access. The Premium trim, priced at $55,485, is scheduled for late 2026. The Standard Long-Range model will cost $49,985 and arrive in early 2027. The base Standard trim will be priced at $46,495 and is expected in late 2027.