Rivian Automotive shares rallied more than 14% in after-hours trading Thursday, following the electric vehicle manufacturer's optimistic delivery forecast for 2026. The company anticipates a 53% increase in deliveries that year, largely driven by the launch of its new, lower-priced R2 sport utility vehicle, which is expected to start around $45,000.
Financial Performance and Forward Guidance
The company reported fourth-quarter deliveries of 9,745 vehicles, with revenue reaching $1.286 billion. Both figures represented a decline from the previous year. However, software and services revenue more than doubled to $447 million, bolstered by development work for its joint venture with Volkswagen.
Looking ahead, Rivian expects to deliver between 62,000 and 67,000 vehicles in 2026. The company also projected capital expenditures of $1.95 billion to $2.05 billion and an adjusted EBITDA loss ranging from $1.8 billion to $2.1 billion for that period.
Strategic Shift and Market Challenges
The introduction of the R2 marks a strategic pivot for Rivian as it seeks to expand beyond its premium R1 lineup and tap into the broader mass market. This move comes amid cooling U.S. demand for electric vehicles following the expiration of federal tax credits last year.
Analysts have identified the R2 launch as a critical catalyst for the company this year. However, they also note that increased capital spending could pressure the stock in the near term. The company faces the dual challenge of scaling production efficiently while managing cash burn as it ramps up new manufacturing and enhances its in-house driver-assistance technology.
Rivian shares had closed the regular trading session down 5.2% at $14.00 before the after-hours surge. The company plans to provide further updates on the R2 on March 12, with initial customer deliveries scheduled for the second quarter of 2026.
