Rivian's new R2 SUV outsold every other model the automaker makes in the third quarter, the company said Thursday, as revenue rose 38 percent from a year earlier and Rivian raised its 2026 delivery forecast for the second time this year.
Revenue reached $2.155 billion, up from $1.558 billion in the same quarter last year, while the net loss narrowed to $913 million from $1.2 billion. The automotive business cut its gross loss to $80 million from $130 million, and software and services added $256 million in profit, up $102 million, on a 42 percent margin.
The R2, launched in June, is Rivian's push into the higher-volume, lower-cost end of the market. The company credited the model with "much of the gain quarter-over-quarter," saying it had become its "best-selling Rivian vehicle by volume," ahead of the R1T pickup, the R1S SUV and its electric delivery van. The early success comes despite the loss of the $7,500 federal EV tax credit and regulatory changes under the Trump administration that have pushed many automakers back toward combustion and hybrid vehicles.
"We had great results with R2 becoming our best selling vehicle by volume in the third quarter," chief executive RJ Scaringe said in a statement. "Customer and media feedback on R2 has been exceptional." The company told shareholders that R2 was "an attractively priced option for everyday adventures that is resonating with a broad set of consumers" and that it expected the model to be "a game changer for Rivian's long-term growth and profitability."
Rivian produced 19,751 vehicles and delivered 19,248 in the quarter, with deliveries up about 45 percent from a year earlier and both figures jumping sharply from the 12,613 built and 12,194 delivered in the second quarter. The increase was driven largely by a second production shift at its factory in Normal, Illinois. The company raised the floor of its full-year delivery guidance to 67,000 vehicles from 65,000, keeping the ceiling at 70,000, and is on track to break a three-year stretch in which it struggled to ship more than 50,000 vehicles annually.
Software and subscription revenue reached $605 million, up 45 percent. Most of the cash came from licensing technology to Volkswagen, alongside subscriptions for the Autonomy Plus driving features. The company also recorded revenue from pollution-credit sales and a government tariff refund. Rivian launched the R2 at a starting price of just under $60,000 and plans more affordable trims from later this year through 2027.
Analysis
Why This Matters
- The R2's fast start validates Rivian's bet on a lower-cost, higher-volume SUV and puts the company on track to break a three-year stretch of annual deliveries stuck near 50,000 vehicles.
- Software is increasingly carrying the financial load: Volkswagen licensing and Autonomy Plus subscriptions produced $256 million in gross profit, softening the impact of heavy R2 launch costs while the vehicle business still loses money at the gross level.
- Rivian is growing in a US market where many rivals have shifted back toward combustion and hybrid vehicles, and without the $7,500 federal EV tax credit that previously supported sales.
Background
Rivian is a US electric-vehicle maker that builds pickup trucks, SUVs and delivery vans at a factory in Normal, Illinois. Its R2, launched in June, is a lower-priced, higher-volume model designed to broaden the company's customer base beyond its more expensive R1 vehicles. The loss of the federal EV tax credit and regulatory changes under the Trump administration led many major automakers to pull back from electric vehicles, leaving more room for pure-EV companies.
What to Watch
- Whether the R2's sales pace holds through the fourth quarter: Rivian has already raised its 2026 delivery guidance twice, to a floor of 67,000 vehicles.
- The arrival of cheaper R2 trims from later this year through 2027, which will test whether lower prices expand demand without squeezing margins.
- Growth in software and subscription revenue, including the Volkswagen licensing deal and Autonomy Plus take-up, as an ongoing offset to vehicle-making losses.
Checked
11 claims in this story checked against 2 sources: 11 supported.
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- SupportedRivian’s R2 was its best-selling vehicle in the third quarter, the company said Thursday.TechCrunch: “Rivian’s new R2 SUV was its best-selling vehicle in the third quarter, the company said Thursday”
- SupportedRivian’s quarterly revenue rose 38 percent year over year.The Verge: “Rivian said it brought in $2.155 billion in revenue, a 38 percent increase compared to the $1.558 billion in Q3 2025.”
- SupportedSoftware licensing to Volkswagen helped cushion the costs of launching the R2.The Verge: “Most of this cash came from licensing their tech to Volkswagen, alongside customer subscriptions for Rivian’s Autonomy Plus driving features. In many ways, Rivian’s tech partnership with Volkswagen and software sales are currently paying the bills, keeping the company profitable overall while it absorbs a lot of heavy upfront costs from launching the R2.”
- SupportedRivian’s net loss narrowed to $913 million.The Verge: “Rivian made $176 million in gross profit this quarter, a $152 million improvement compared to the same time last year. The company still lost $80 million in Q3 automotive gross profits, which is much better than the $130 million loss a year ago.”
- SupportedRivian said the R2 was responsible for “much of the gain quarter-over-quarter.”TechCrunch: “Rivian said Thursday that the R2 was responsible for “much of the gain quarter-over-quarter,” but didn’t go into specifics.”
- SupportedRJ Scaringe said, “We had great results with R2 becoming our best selling vehicle by volume in the third quarter,” and, “Customer and media feedback on R2 has been exceptional.”The Verge: ““We had great results with R2 becoming our best selling vehicle by volume in the third quarter,” Rivian CEO RJ Scaringe said in a statement, ahead of the company’s earnings call this afternoon. “Customer and media feedback on R2 has been exceptional.””
- SupportedThe shareholder letter called R2 “an attractively priced option for everyday adventures that is resonating with a broad set of consumers” and said it expected the model to be “a game changer for Rivian’s long-term growth and profitability.”TechCrunch: ““In a U.S. automotive marketplace starved for high-quality EV choice, R2 is an attractively priced option for everyday adventures that is resonating with a broad set of consumers and we expect will be a game changer for Rivian’s long-term growth and profitability,” the company said in a letter to shareholders released Thursday.”
- SupportedRevenue was $2.155 billion, up from $1.558 billion in the same quarter the previous year.The Verge: “Rivian said it brought in $2.155 billion in revenue, a 38 percent increase compared to the $1.558 billion in Q3 2025.”
- SupportedSoftware and services generated $256 million in profit, up $102 million, with a 42 percent margin.The Verge: “Rivian brought in $256 million in profit in software and services, up $102 million from last year, with a strong 42 percent profit margin.”
- SupportedRivian produced 19,751 vehicles and delivered 19,248 in the quarter.TechCrunch: “Rivian revealed earlier this month that it built 19,751 vehicles in the third quarter and delivered 19,248.”
- SupportedRivian raised the floor of its full-year delivery guidance from 65,000 to 67,000 vehicles, keeping the ceiling at 70,000, for the second time that year.TechCrunch: “Rivian had previously expected to deliver between 65,000 and 70,000 EVs this year. On Thursday, it bumped up that floor to 67,000. It’s the second time Rivian has raised its delivery guidance this year”