stockrowWhat it does
Rivian is an American automotive technology company that develops and manufactures electric vehicles, along with vehicle technology and services. It sells directly to individual buyers and commercial fleet customers. The company was incorporated in 2015, is headquartered in Irvine, California, and is led by chief executive Robert J. Scaringe.
Its consumer vehicles began with the R1T pickup truck and R1S sport utility vehicle. Rivian has also introduced the R2 midsize SUV and plans an R3 midsize crossover. It was reported on 30 October 2026 that R2 deliveries began in June and that the model had become Rivian’s best-selling vehicle, ahead of its R1 models and delivery vans.
For businesses, Rivian makes an electric commercial van platform. Its electric delivery van was designed with Amazon, its first commercial customer, for centrally managed fleets. Amazon’s initial order covers 100,000 vans globally, subject to modification.
Rivian also develops vehicle software, electrical systems, propulsion and driver-assistance technology. Customers can receive software updates over the air, without bringing a vehicle to a service center. Rivian offers repair and maintenance, charging, subscriptions, financing and insurance alongside vehicle sales. Its equally owned joint venture with Volkswagen Group develops vehicle electrical architecture and software for use across multiple brands.
How it makes money
Rivian reports two segments: Automotive and Software and Services. Automotive revenue comes from vehicle sales and sales of regulatory credits earned under emissions and clean-fuel programs. Software and Services includes development work by the Volkswagen joint venture as well as services offered to vehicle customers.
Automotive segment revenue was $3.8 billion in FY2025, down from $4.5 billion in FY2024. Software and Services segment revenue was $1.6 billion in FY2025, up from $484.0 million in FY2024. Regulatory credits contributed $197.0 million in FY2025. The credits are sold to regulated entities that can use them to meet emissions and other requirements; Rivian says changes to credit programs make future earning and sales uncertain.
Some services can produce revenue after the initial vehicle sale. Connect+ offers enhanced media, connectivity and security for a monthly payment or a discounted annual payment. FleetOS is a subscription platform for commercial customers that brings together fleet data and functions such as charging, service and vehicle management. Rivian also offers vehicle repair, maintenance, charging, accessories, insurance and financing, and sells used vehicles.
Autonomy+ offers advanced driver-assistance features. Rivian says its current core feature is Universal Hands Free, and that subscription take-up has exceeded its expectations. The company’s joint venture provides electrical architecture and software development services, with Volkswagen Group planning to use its technology across multiple brands.
Rivian expects to exit the fourth quarter of 2026 at an automotive gross profit, but does not expect an automotive gross profit for the full quarter.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Automotive | $3.8 billion | 35.5% | −14.6% |
| New electric vehicles | $3.6 billion | 33.8% | −12.5% |
| Software And Services | $1.6 billion | 14.5% | 221.7% |
| Software and services | $1.6 billion | 14.5% | 221.7% |
| Regulatory credits | $197.0 million | 1.83% | −40.8% |
Customers and how it sells
Rivian sells vehicles directly to consumers and commercial customers. Its consumer range includes a pickup and SUVs, while its commercial vans are designed for fleet operators, including last-mile delivery businesses. The company also sells used Rivian vehicles directly through its website and accepts trade-ins when customers buy a Rivian.
Amazon was Rivian’s first commercial customer and collaborated with it on the electric delivery van. Rivian says Amazon’s demand for the vans increased significantly in 2026 and that it continues to discuss commercial vehicles with customers outside Amazon. Chase Bank accounted for 36.0% of revenue in FY2025.
Rivian manufactures its vehicles in the United States, at its factory in Normal, Illinois. It has the national certifications required to sell vehicles in Canada and holds sales and service licenses in several Canadian provinces. In the United States, direct-sales rules differ by state; where Rivian cannot obtain a local license, it conducts sales to residents out of state over the internet or by telephone.
Its service network includes physical service centers and mobile service vehicles, supplemented by partner repair providers. The Rivian Adventure Network of fast chargers operates across North America, and over 95% of that network is open to non-Rivian electric vehicles.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Automotive | $3.8 billion | 71.1% | −14.6% |
| Software and Services | $1.6 billion | 28.9% | 221.7% |
Suppliers and costs
Rivian purchases raw materials and components from hundreds of suppliers worldwide. Many components come from single- or limited-source suppliers without an immediately available alternative. Rivian seeks to qualify alternatives and hold buffer inventory where possible, but has experienced component shortages. Battery materials, including lithium, nickel, graphite and cobalt, are vulnerable parts of the supply chain; rare-earth magnet materials also have geographically limited supply.
The Normal factory makes vehicles on the R1 and commercial van platforms and has been upgraded for R2 production. It was reported on 30 October 2026 that Rivian had started a second R2 production shift at the Illinois factory. Rivian has also built a supplier and logistics park near the plant to support production and reduce logistics costs.
Plant utilization affects the cost of each vehicle: operating below full production capacity raises plant costs per unit. Rivian says reducing costs also depends on scaling production, negotiating supplier prices and managing labor, logistics and warranty costs. The company says R2 is a lower-cost product that benefits from scale at Normal, although the ramp has not yet reached the full rate of a two-shift operation. Rivian has also reported higher-than-expected commodity pricing, particularly for memory.
- Revenue$5.4B
- Cost of revenue−$5.2B
- Research and development−$1.7B
- Selling, general and administrative−$2.1B
- Operating income−$3.6B
Competitive position
Rivian competes for consumer and commercial vehicle buyers against electric vehicles and traditional vehicles powered by internal combustion engines. Competition also extends beyond vehicle manufacturers and dealers to used-vehicle sellers, repair and maintenance providers, charging companies, autonomous-driving software developers and fleet-management companies. No individual competitor is named in the available descriptions of those markets.
Rivian identifies product performance and quality, technology, design, customer experience, pricing, total cost of ownership and manufacturing efficiency among the factors on which it competes. It sells and services vehicles directly and designs substantial parts of their software, electrical architecture and propulsion systems in-house. Its vehicles can receive over-the-air updates, and its autonomy system uses driving data to train its software.
Our reading: Rivian’s control of vehicle technology and direct customer relationships can support differentiation, but competing automakers and service providers can also invest in these areas. Its intellectual property offers some protection, although the company does not consider any single piece material to the whole business and notes that rights can be challenged or circumvented.
Our reading: Rivian’s joint venture with Volkswagen provides a route for its architecture and software to reach other vehicle brands, but the venture is equally owned rather than wholly controlled by Rivian. Rivian’s charging, service and subscription offerings add customer touchpoints, while those activities also face separate competitors.
Growth opportunities
Rivian’s growth plans include increasing R2 production, expanding its vehicle range and adding revenue from software and services. It was reported on 30 October 2026 that the R2 had become its best-selling vehicle and that a second production shift had started at its Illinois factory. Rivian says its R1 range is intended to remain a flagship rather than a high-volume product.
The company plans to manufacture vehicles on its midsize platform, which underpins R2 and the planned R3 crossover. It has also planned a second factory near Social Circle, Georgia, to support demand in the United States and international markets. Rivian said in April 2026 that a Department of Energy loan provides up to $4.5 billion, including principal and capitalized interest, for the Georgia expansion.
Software and services are another part of the company’s growth strategy. Rivian expects a growing vehicle fleet and a wider range of offerings to increase customers’ use of its services over the life of their vehicles. Its Volkswagen joint venture develops electrical architecture and software for vehicles across multiple brands.
Rivian is also investing in advanced driver assistance and autonomy. The company expects a broader release of its point-to-point capability to Autonomy+ subscribers in the 2027 timeframe and is planning for level-four capability in 2028. It says research and development spending will grow more significantly in 2027 than in 2026, driven by investments in autonomy software and vehicle technologies.
- $55.0MFY2021
- $1.7BFY2022
- $4.4BFY2023
- $5.0BFY2024
- $5.4BFY2025
Structural risks
- Losses and funding: Rivian is a growth-stage company with a history of losses. Investments in facilities and technology may bring further losses and delay profitability and positive operating cash flow. The Georgia factory investment could require significant external debt or equity financing.
- Production and costs: Rivian’s ability to sell vehicles profitably depends on scaling production and reducing costs. Delays in the R2 ramp, supplier price reductions or warranty cost improvements could affect gross margin and profitability.
- Supply chain: Many components have single- or limited-source suppliers. Shortages, raw-material price changes, tariffs and export controls can disrupt production or increase costs; battery and rare-earth materials are particular vulnerabilities.
- Demand and incentives: Vehicle demand is affected by economic conditions, competition, charging availability and government incentives. The expiration of certain federal electric-vehicle tax credits in September 2025 contributed to a pull-forward of deliveries and a subsequent decline in the fourth quarter.
- Regulation and technology: Changes to emissions-credit programs have hurt Rivian’s ability to monetize credits. Cyberattacks, data-security breaches or technology-system failures affecting Rivian or its vendors could harm its business and lead to legal or regulatory penalties.
Bottom line
Our reading
Rivian combines vehicle manufacturing with a software and services business that extends beyond the initial sale. Our reading: its ability to scale R2 and lower manufacturing costs is central to turning that model into a profitable operation, while supplier constraints and continued investment remain important exposures. The Volkswagen joint venture and subscriptions provide additional routes to revenue, but they do not remove the demands of scaling vehicle production.