TL;DR
Get business pricing on garage and car supplies
- Business-only prices and quantity discounts
- Tax-exempt purchasing
- Multiple users, one account, clear invoices
Rivian raised the baseline for its annual delivery forecast to 67,000 vehicles, from 65,000, while keeping the top end at 70,000. The company said its R2 midsize SUV outsold its other models in the third quarter, and expects most deliveries needed to meet its revised target to be R2s. Rivian still reported a quarterly net loss of $913 million.
Rivian raised the low end of its annual delivery forecast after saying the new R2 midsize electric SUV became its best-selling vehicle by volume in the third quarter. The company now expects to deliver 67,000 to 70,000 vehicles, up from a previous range of 65,000 to 70,000, as it increases R2 production while continuing to report a net loss.
Rivian said the R2 outsold the R1T pickup, R1S SUV and electric delivery van from July through September. The company reported 19,751 deliveries in the quarter, a record according to the source report. It had already raised the lower end of its annual forecast from 62,000 to 65,000 vehicles before making the latest adjustment.
Meeting the new forecast’s lower end would require Rivian to deliver at least 25,193 vehicles in the next quarter, based on the report’s calculation. On the earnings call, interim CFO Derek Mulvey said Rivian expects the majority of those deliveries to be R2s. The company did not provide a specific R2 delivery figure in the supplied report.
Rivian said it has started a second production shift for the R2 and expects its production run rate to rise over coming quarters. The company said the ramp could help it end the year with a positive automotive gross margin. That forecast concerns automotive gross margin, not overall profitability: Rivian reported a $913 million net loss for the quarter.
R2 Sales Put Rivian’s Scale to the Test
The R2 is central to Rivian’s effort to sell more vehicles at a scale that can improve its economics. Its early position as the company’s volume leader and the higher delivery forecast suggest that Rivian is counting on the new SUV to carry a large share of near-term growth. The forecast still depends on the company producing and delivering enough vehicles as it expands output.
The financial results show both progress and risk. Revenue rose 38% to $2.1 billion from the same quarter a year earlier, while the net loss narrowed from $1.17 billion to $913 million. Rivian also said software and services revenue increased 45% to $605 million, with the report linking that growth in part to its Volkswagen Group partnership. Those figures provide context for the business, but they do not mean Rivian has become profitable.
For buyers and investors, the question is whether the R2 can sustain demand as production increases and lower-priced versions arrive. Rivian’s sales target is an outlook, not a confirmed result, and the company has not disclosed how many R2s it expects to sell across the full year.
Products Worth Considering
DEWALT 20V MAX 1/4-Inch Impact Driver Kit with Battery and Charger (DCF787D1)
DEWALT 20V MAX XR Hammer Drill and Impact Driver Combo Kit with Two 4Ah Batteries and Charger
Autel MaxiScope MP608 4-Channel Automotive Oscilloscope
As an affiliate, we earn on qualifying purchases.
Rivian’s Revised Delivery Outlook
The latest change follows an earlier increase in Rivian’s annual delivery guidance: the lower end rose from 62,000 to 65,000 vehicles, then to 67,000, while the upper end remained at 70,000. The company attributed the newest revision to the R2’s third-quarter sales performance. The supplied report does not give the original calendar year, so the forecast period is described here as annual rather than assigning a year.
Rivian launched the R2 in June with a Performance Launch Edition priced just under $60,000, according to the report. A Premium trim listed at $53,990 was expected to reach the market that year, while a Standard version priced at $44,990 was planned for 2027. These were announced plans in the source material, not confirmation that the trims have since launched.
Rivian has framed the R2 as a vehicle intended to broaden its sales beyond its existing R1 models and delivery vans. The company has also identified it as part of a wider plan to fund future vehicles, including the R3, and develop driver-assistance and autonomy products. Those longer-term plans are separate from the near-term delivery forecast.
“We had great results with R2 becoming our best selling vehicle by volume in the third quarter.”
— RJ Scaringe, Rivian chief executive
Production, Demand and Profitability Questions
The report gives no exact count of R2 deliveries for the quarter, nor a breakdown of the revised annual target by model. It also does not specify how many R2s Rivian expects to build after adding the second shift or provide a detailed schedule for the production ramp. The company’s expectation that most upcoming deliveries will be R2s remains a forecast.
It is also unclear whether Rivian will reach the lower end of its updated guidance or achieve positive automotive gross margin by year-end. The source reports a quarterly net loss and does not say when the company expects to reach overall profitability. Future trim launch timing and pricing are presented as plans in the report, not as independently verified current status.
R2 Output and Year-End Results
The next tests are Rivian’s ability to raise R2 production with its second shift and convert that output into deliveries. The company’s next results should show whether the expected production ramp is occurring and how many vehicles it delivered against the 67,000-to-70,000 annual range.
Rivian has also said it expects the R2 ramp to support a positive automotive gross margin by year-end. That remains a company forecast. Updates on vehicle deliveries, production rates, margins and the planned rollout of additional R2 trims will clarify whether the SUV is meeting the role Rivian has assigned to it.
Key Questions
What delivery forecast did Rivian announce?
Rivian raised the lower end of its annual delivery outlook from 65,000 to 67,000 vehicles. The upper end remains 70,000.
Why did Rivian raise its forecast?
The company said the R2 outsold Rivian’s other models by volume in the third quarter. It has also started a second production shift for the SUV.
How many vehicles did Rivian deliver in the third quarter?
Rivian reported 19,751 deliveries for the quarter. The supplied report does not provide a separate R2 delivery total.
Is Rivian profitable?
No. Rivian reported a $913 million net loss for the quarter, although that was smaller than the $1.17 billion loss reported for the same period a year earlier.
When are lower-priced R2 versions expected?
The report said a $53,990 Premium trim was expected during the year covered by the report and a $44,990 Standard version was planned for 2027. Those dates are plans reported at the time, not confirmation of current availability.
Source: insideevs.com
