Rivian swings to revenue on VW JV regardless of EV gross sales backslide

Rivian reported consolidated gross revenue of US$144m for full 12 months 2025, a US$1.3bn enchancment from 2024’s US$1.2bn loss, as software program and providers income tripled to US$1.55bn regardless of automotive income falling 15%. The US electrical car (EV) maker delivered simply 42,247 automobiles in 2025—a notable drop from the 51,579 models it offered in 2024—however it’s betting the farm on the launch of the extra reasonably priced R2 mid-size SUV triggering a gross sales revival in 2026.

Final 12 months’s collapse in deliveries was attributed largely to Trump administration coverage, most importantly the elimination of the US$7,500 federal EV tax credit score. Fourth-quarter consolidated gross revenue reached US$120m on US$1.29bn income, beating Wall Road estimates that the corporate would kind of break even. Automotive gross revenue posted a US$59m loss within the quarter in contrast with US$110m revenue the prior 12 months, pushed primarily by a US$270m lower in regulatory credit score gross sales.

Software program and providers gross revenue, alternatively, surged to US$179m from US$60m within the This fall 2024. The software program income development stems nearly totally from Rivian’s know-how three way partnership with Volkswagen, which is supplying the German automaker with electrical and software program outlined car structure. Rivian obtained US$1bn in convertible notes in 2024 and one other US$1bn fee in July 2025 underneath the milestone-based association price as much as US$5.8bn by means of 2027.

Through the earnings name, Chief Monetary Officer Claire McDonough reassured traders by emphasising the regular revenue Rivian will proceed to obtain from Volkswagen. The corporate expects an extra US$2bn to pour in throughout 2026, with US$1bn topic to profitable winter testing completion and the remaining US$1bn as non-recourse debt anticipated in October. In different phrases, Rivian may have worn by means of most of its software program life raft by the point 2027 rolls in, even within the best-case situation.

Little shock, then, that the automaker is doing every little thing in its energy to revive its tumbling car gross sales. It’s projecting 2026 deliveries to come back in between 62,000 and 67,000, representing as much as 59% development from the weakened ranges seen in 2025. This prediction rests on the idea that the much-hyped R2 SUV—beginning round US$45,000—will likely be enthusiastically obtained by mass market shoppers repelled by surging automotive costs, notably for EVs. The one Rivian mannequin obtainable at current, the R1, usually begins round US$71,000.

Rivian accomplished first manufacturing validation builds utilizing manufacturing instruments and processes at its Regular, Illinois plant in mid-January 2026, and plans to disclose extra product particulars on 12 March. Chief Govt RJ Scaringe stated volumes for the R1T pickup, R1S SUV and electrical supply vans will stay largely flat from 2025 ranges, implying that Rivian expects a minimal of twenty-two,000 R2 deliveries this 12 months.

The corporate reported price of products offered per unit of US$92,000 within the fourth quarter, enhancing US$4,000 from the third quarter and US$7,000 from the fourth quarter of 2024. This comes regardless of issues that President Donald Trump’s tariff regime would negatively affect components procurement prices—a problem the automaker had flagged beforehand. It’s unclear how a lot decrease these prices would have been with out the affect of tariffs.

Rivian has warned that capital expenditures are anticipated to soar in 2026, practically doubling to between US$1.95bn and US$2.05bn in preparation for sequence manufacturing of the R2 and growth of its in-house autonomous driving capabilities. The automaker unveiled its RAP1 Autonomy Processor in December 2025, alongside a third-generation autonomy platform designed to allow ‘eyes-off’ and private SAE Stage 4 capabilities at an undetermined level sooner or later.

Rivian ended December with US$3.58bn in money and money equivalents in contrast with US$4.44bn on the finish of September, with Scaringe telling Reuters that the automaker will likely be “opportunistic on the subject of elevating extra capital” because it eats by means of its capital reserves. This time a 12 months in the past it informed the outlet that different automakers have been “knocking on (its) door” for partnerships, though nothing has but emerged from these discussions.

“In 2025 we targeted on execution as we laid the inspiration for dramatically scaling our enterprise,” he remarked individually in a press launch. “It’s extremely thrilling to see the early sturdy evaluations of the R2 pre-production builds, and we are able to’t wait to get them to our clients subsequent quarter.”