Rivian's latest earnings may have been the 'low point.' Here's what comes next.

By William Gavin

The EV maker is betting on a new, more affordable electric SUV to boost sales

Rivian Automotive plans to begin delivering its R2 mid-size SUV to customers in the current quarter, giving its sales a potential boost.

Rivian Automotive on Thursday posted decent first-quarter earnings, but the company really wants investors looking to the future.

"With the launch of R2, we are excited to dramatically expand our market opportunity and have more people driving Rivians," Rivian CEO RJ Scaringe said in a statement.

Rivian (RIVN) posted a loss per share of 33 cents for the March quarter, better than the loss of 48 cents a share it reported in the first quarter of 2025. It also said it had $1.38 billion worth of sales last quarter, narrowly beating Wall Street's expectations, according to FactSet data.

Rivian said that its performance was driven by its deliveries in the March quarter, which came in below expectations but marked a 20% year-over-year increase. It recorded automotive revenue of $908 million, as well as $437 million in sales from its software division.

In an April 2 note, Baird's Ben Kallo said the March quarter would likely be Rivian's "low point" of the year. Wall Street expects Rivian's sales to steadily grow as the year unfolds, peaking at 23,000 deliveries in the fourth quarter, according to FactSet estimates.

That's primarily due to optimism around the R2 midsize SUV, which will be more affordable than Rivian's current lineup of electric vehicles that start at more than $70,000. The first customer-intent R2 rolled off the production lines last week.

Rivian said last month that it would begin delivering the $57,990 R2 Performance in the current quarter, with a cheaper model set to debut later this year. A model that will cost about $45,000, the original price Rivian advertised for the R2, won't be offered until late 2027.

See more: Rivian is fulfilling its promise to launch a $45,000 EV, but there's a catch

Rivian on Thursday also reiterated full-year guidance that calls for deliveries of between 62,000 and 67,000 vehicles. It also reiterated guidance that calls for an adjusted loss of between $1.8 billion and $2.10 billion in 2026 and expectations to book between $1.95 billion and $2.05 billion in capital spending in 2026.

Rivian ended the March quarter with $4.83 billion in cash and equivalents after spending $372 million in capex. It had a negative free cash flow of more than $1 billion for the quarter, up from a $526 million cash burn in the year-ago quarter.

Based on the company's forecast for capex, spending will likely accelerate across the rest of that year. Some of that will likely be related to its work on a factory in Georgia dedicated to the R2. Currently, the car is made at Rivian's flagship plant in Illinois.

Rivian said it now expects to make up to 300,000 units annually at the Georgia plant, a 50% bump compared to its prior plans. The U.S. Energy Department has given the company a loan of up to $4.5 billion to help build the plant.

Beginning in late 2028, that plant is also expected to build up to 50,000 robotaxis, some of which may be bought by Uber Technologies (UBER). The ride-hailing company expects to buy up to 50,000 Rivian robotaxis and invest up to $1.25 billion in the company. That includes up to $550 million that could be invested by the end of the year, Rivian said.

Adding to Rivian's cash is $1 billion from partner Volkswagen (XE:VOW) after the companies' joint venture completed winter weather testing of their "software-defined vehicles." Overall, Volkswagen is expected to invest up to $5.8 billion in Rivian due to their partnership.

Rivian on Thursday also reported a first-quarter adjusted loss before interest, taxes, depreciation and amortization of $472 million, an 8% improvement compared to expectations, according to FactSet.

Gross profit came in at $119 million with a gross margin of 8.6% for the first quarter, roughly in line with expectations. Most of that profit was thanks to Rivian's software division, while its vehicle business took a $62 million gross profit loss, primarily as a result of weaker sales of regulatory credits and lower car production.

Rivian also took a net loss of $416 million, better than the $541 million loss it took a year ago. That was partially thanks to a $506 million windfall related to Mind Robotics, Rivian's spun-off startup that recently raised $500 million. Rivian has a 38% stake in Mind Robotics and also has a 35% in Also, its spun-off small EV startup.

Rivian shares nudged up slightly in after-hours trading on Thursday. The stock is down by about 16% year-to-date.

-William Gavin

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04-30-26 1710ET