Rivian reported a negative automotive gross profit in the fourth quarter of 2025, marking ongoing challenges in vehicle profitability. However, improvements in average sales price and lower cost of goods sold per unit enabled the company to deliver its first full-year positive gross profit for 2025.

The company plans to begin R2 deliveries in Q2 2026, with initial volumes modest before a ramp-up in the second half. Rivian is coordinating with suppliers to mitigate production bottlenecks and aims to deliver between 62,000 and 67,000 vehicles across its R1, R2, and commercial van lines in 2026.

Rivian anticipates that the complexity of launching the R2 will weigh on automotive gross profit during Q2 and Q3 2026. Software and services revenue is projected to grow roughly 60% year-over-year, with mid-30% margins expected, driven in part by the Volkswagen joint venture.

Rivian has developed its own RAP1 AI chip and introduced universal hands-free driving to enhance its autonomy capabilities. Its joint venture with Volkswagen has delivered test vehicles for winter trials just 13 months after formation, highlighting the scalability of Rivian's EV platform for other automakers.