Rivian CEO says new R2 SUV, autonomy make 2027 an ‘inflection year’ as EV maker marks five years since IPO

Summary

• Rivian's stock price has declined more than 80% since its Nov. 10, 2021 IPO at $78 per share, including a nearly 30% drop this year.
• The company delivered a record 19,248 vehicles in the third quarter of 2026, a 46% increase year over year, with the R2 SUV becoming its best-selling vehicle by volume.
• CEO RJ Scaringe identified 2027 as an inflection year for the business, citing the R2 SUV as the core driver for profitability and revenue growth.
• The R2 SUV features an entry-level price of approximately $45,000 & automotive cost of goods sold per vehicle improved by more than $12,000 quarter over quarter.
• Rivian is constructing a new Georgia factory with a capacity of up to 300,000 units annually upon completion in late 2028, while its Normal, Illinois plant can produce 215,000 vehicles annually.
• The company generated $176 million in consolidated gross profit in the third quarter, though its automotive business posted an $80 million gross loss while its software & services unit generated $256 million in gross profit.
• Rivian reported total available future liquidity of about $13 billion, including a $4.5 billion U.S. Department of Energy loan for the Georgia plant, partnerships with Volkswagen & Uber, & $5.5 billion in cash & short-term investments.
• The company plans to release point-to-point driving capabilities soon, allowing vehicles to drive autonomously from destination to destination with a driver monitoring.
• Rivian aims to exceed Tesla's current autonomy features by using multiple sensor types for better visibility in inclement weather.
• Autonomous vehicles developed with Uber are expected to be released by 2028.
• Rivian will provide further details on its AI & autonomous plans during a second annual investor technology event on Dec. 9.
• Analysts currently rate Rivian's stock as overweight with a $17.70 target price, representing a roughly 26% increase from the recent closing price.