Key Takeaways
- Shares of Rivian declined 6.6% on Tuesday, settling at $15.73, even as the company commenced R2 SUV deliveries
- The R2’s starting price is $57,990 for the Launch Package edition, while a model under $50,000 won’t arrive until early 2027
- The electric vehicle maker accelerated its base R2 delivery schedule from late 2027 to the summer of next year
- Total vehicle deliveries reached 42,247 in 2025; analysts forecast 220,000 units by 2028
- Year-to-date performance shows a 21% decline, though the stock has gained 7% over the trailing twelve months
Tuesday marked the official start of R2 deliveries for Rivian, yet investors responded with selling pressure. Shares of Rivian (RIVN) retreated 6.6%, ending the session at $15.73 despite reaching an intraday peak of $16.92, as the automaker distributed its inaugural R2 SUVs to early reservation holders.
The decline occurred against a backdrop of broader market weakness. The S&P 500 shed 0.3%, as investor concerns surrounding inflation pressures and the possibility of interest rate increases dampened sentiment throughout the trading day.
Representing Rivian’s more accessible second-generation electric vehicle offering, the R2 is positioned significantly below the company’s R1S SUV, which carries a starting price point near $77,000. The Launch Package variant of the R2 begins at $57,990, though CEO RJ Scaringe indicated that he anticipates the primary sales volume to settle in the low $50,000 range once manufacturing reaches full capacity.
A model priced below $50,000 won’t be available until the first six months of 2027.
In a positive development from the launch event: Rivian advanced the introduction date for its entry-level R2 variant, shifting it from late 2027 to the following summer. Initial assessments of the vehicle skewed overwhelmingly favorable.
Baird analyst Ben Kallo participated in the delivery event held in Irvine, California, and left with strong impressions. “We walked away from our test drive wowed,” he noted, stating that the R2 represented an advancement over Rivian’s initial R1 product line.
Profitability Timeline Extended
Scaringe spoke candidly about Rivian’s current position: the automaker has not yet achieved the production volume necessary to reach profitability. While Rivian reported its third consecutive quarter of positive gross profit overall, the automotive division still recorded a $62 million gross profit deficit in the first quarter.
The manufacturer produced 42,247 vehicles throughout the previous year while accumulating $3.6 billion in losses during that timeframe. A prior commitment to achieve adjusted profitability by 2027 was quietly abandoned earlier this year, with management offering no replacement timeline.
The Georgia production facility, anticipated to begin operations in late 2028, represents a cornerstone of the profitability strategy. “Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything,” Scaringe explained to CNBC.
Financial analysts currently project that Rivian won’t achieve full-year profitability until 2030, when annual deliveries are expected to surpass 420,000 vehicles.
Drawing Comparisons to Tesla
The R2’s introduction naturally invites comparisons to Tesla’s Model 3 milestone. Tesla delivered approximately 76,000 vehicles in 2015 before introducing the Model 3 in 2017. By 2019, that number had surged to roughly 368,000 units. Today, Tesla’s annual sales exceed 1.8 million vehicles.
Rivian appears to be executing a comparable strategy: establish the brand with premium, lower-volume offerings, then achieve scale through a more affordable product targeting mass-market consumers.
Tesla’s stock traded around $22 when Model 3 deliveries commenced. By the conclusion of 2020, it had appreciated approximately tenfold.
Leading up to Tuesday’s delivery event, Rivian shares had appreciated 20% during the previous month. On Wednesday, the stock declined an additional 1.8% during midday trading.
For the current year, RIVN has declined 21%. Over the past twelve months, the stock has gained 7%.
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