Rivian Starts R2 Production, Targets Positive Auto Gross Profit by End-2026
Updated
Updated · Trefis · Jul 2
Rivian Starts R2 Production, Targets Positive Auto Gross Profit by End-2026
3 articles · Updated · Trefis · Jul 2
Summary
$18-a-share Rivian is entering a make-or-break phase after starting R2 production, with the lower-cost model positioned as its first true mass-market EV.
Rivian says the R2 bill of materials should be about half that of the R1, a cost cut central to management's goal of reaching positive automotive gross profit by late 2026.
$4.8 billion in cash, $2.55 billion expected from Volkswagen Group and Uber in 2026, and up to $4.5 billion in DOE loan capacity give Rivian funding to support the launch and its Georgia plant.
The transition still carries heavy risk: Rivian's operating margin is -68.9%, management expects the new launch to hurt gross profit in the second and third quarters, and the stock's implied volatility sits at 66.