Rivian CEO calls 2027 an 'inflection year' as EV maker marks five years since IPO

Rivian went public at $78 per share on Nov. 10, 2021, a time of euphoria for all-electric vehicle companies that has since diminished. Its shares have fallen nearly 30 percent this year, and most of its IPO-era EV peers no longer exist.

“2027 is really an inflection year for us,” Scaringe told CNBC. “I'm excited to start to really show what we believe so fully, the potential of the business.” He said the R2, a midsize SUV with an entry-level model at about $45,000, remains the core business for showcasing its newest technologies. Rivian delivered a record 19,248 vehicles in the third quarter of 2026, up 46 percent year over year, and said the R2 was already its best-selling vehicle by volume, outselling its R1 flagship products and its commercial van. The company said its automotive cost of goods sold per vehicle improved by more than $12,000 quarter over quarter, helped by a higher R2 mix and better fixed-cost leverage.

Rivian is also building a multibillion-dollar factory in Georgia, which it says will be capable of producing up to 300,000 vehicles annually once the initial phase of construction is completed in late 2028. Its existing plant in Normal, Illinois, can produce 215,000 vehicles a year. Scaringe said the company has decided to work toward profitability while investing deeply in its technology, “and in particular in autonomy.”

Rivian generated $176 million of consolidated gross profit in the third quarter, but its automotive business posted an $80 million gross loss, while its software and services unit produced $256 million of gross profit at a 42 percent margin. The company said its total available future liquidity is expected to be about $13 billion, including available credit, money from partnerships with Volkswagen and Uber, and a $4.5 billion U.S. Department of Energy loan for the Georgia plant. It ended the quarter with $5.5 billion in cash, cash equivalents and short-term investments. Scaringe said Rivian plans to be “opportunistic” about any additional capital raises.

Wall Street analysts broadly agree the R2 launch is showing encouraging early demand and lowering manufacturing costs, but they are concerned about whether that can offset rising autonomy spending, the Georgia factory buildout and continued cash burn. "Funding has long been a key debate for Rivian investors," Deutsche Bank analyst Edison Yu said in an Oct. 30 investor note. "The notion of a multi-year (even if credible) path to cash flow breakeven will be less attractive to investors."

On autonomy, Rivian plans to release "point-to-point" driving, in which the vehicle drives from destination to destination with the driver supervising, over the coming weeks and months, first to employees and then customers. The release is expected to be followed by autonomous vehicles with Uber by 2028. Scaringe said autonomy would go from a purchase consideration for maybe 10 percent of buyers to the No. 1 or No. 2 consideration for the vast majority, and that Rivian aims to exceed Tesla's capabilities using multiple sensor types to "see" better, especially in inclement weather.

Rivian plans to offer more details at its second annual investor technology event on Dec. 9, which TD Cowen analyst Itay Michaeli called a likely positive catalyst that could set a path for autonomous driving features driving incremental vehicle demand and higher software revenue in 2027. Rivian's stock is currently rated overweight with a $17.70 target price, according to analyst estimates compiled by FactSet, roughly 26 percent above its Monday closing price.