Rivian boosts sales thanks to R2 and VW partnership
Rivian increased its revenue in the third quarter of 2026 by 38 percent to $2.16 billion. Both the automaker’s vehicle deliveries and its software and services business saw strong growth. Alone, 16 percent of the revenue came from its partnership with Volkswagen. Rivian has also raised its full-year forecast.
Image: R2
U.S. electric vehicle manufacturer Rivian produced a total of 19,751 electric vehicles in the third quarter of 2026 and delivered 19,248 units to customers. This represented an 84 percent increase in production compared to the same period last year, with deliveries rising by 46 percent. Both figures set new quarterly records for the company. The new R2 model is particularly crucial for this growth: as a more compact and affordable SUV, it became Rivian’s best-selling model in the third quarter, surpassing both the larger R1 models and the electric delivery vans (EDVs) primarily used by shareholder Amazon. Production of the R2 was further increased at the Normal facility in Illinois. During the reporting period, a second production shift for this model was also launched there.
Revenue rose by 38 percent year-on-year to $2.155 billion. The vehicle business contributed $1.55 billion to this figure, representing a 36 percent increase. However, this segment still showed a deficit on its own: the gross loss in the automotive business was $80 million. In the same quarter last year, it had been $130 million. Rivian attributes the improvement to higher deliveries, a better margin per vehicle, and additional income from regulatory credits. At the same time, the development of the R2 is increasing costs. For this reason alone, Rivian incurred approximately $120 million in additional manufacturing costs in the third quarter compared to a normalized production level.
Rivian benefits from its service business
Even more strongly than the vehicle business, the company’s second pillar continues to grow. The Software and Services segment generated $605 million in revenue, 45 percent higher than in the previous quarter. What’s notable is not only the volume of sales but also the profitability: the segment’s gross profit was $256 million, with a gross margin of 42 percent. This business unit thus generated more gross profit than Rivian as a whole, which achieved $176 million at the corporate level. Drivers of revenue include the development of vehicle architecture and software, as well as repair and maintenance services, and the paid Autonomy+ software package available since April 2026. In contrast, declining revenue from the resale of used vehicles had a dampening effect.
A key component of the software and services business remains the partnership with Rivian’s major shareholder, Volkswagen. $354 million, or 59 percent of the segment’s revenue, came from the joint venture with the Wolfsburg-based company in the third quarter. This represents a significant increase from $308 million in the second quarter. The partners are working together on a zonal electronics architecture and software for future Volkswagen models.
VW licenses parts of Rivian’s AI voice assistant
According to Rivian, the company expects to generate revenue from this joint venture through 2028 to further develop, adapt, and improve its vehicle architecture and software. The partnership was expanded in the third quarter as well: Rivian is now licensing components of its AI voice assistant to the joint venture. This extends the collaboration beyond the initial development of the electronic architecture and software.
Volkswagen also provides financial support to Rivian. On October 7, the previously agreed credit line of over one billion dollars was fully drawn down. The ten-year loan is provided through the joint venture and is available to Rivian for general corporate purposes. In addition, Volkswagen plans another equity investment of 460 million dollars, which is scheduled to be made by January 2028 or as soon as the first Volkswagen vehicle equipped with Rivian’s hardware and software hits the roads—the planned 20,000-euro electric car ID. EVERY1. However, this payment remains conditional on certain requirements. Thus, the significance of the German partner for Rivian extends far beyond current development expenditures.
Overall, a substantial loss
Overall, Rivian reduced its net loss attributable to common shareholders to $913 million, down from $1.173 billion in the prior-year quarter. Its adjusted EBITDA improved from -$602 million to -$435 million. For the full year, the company is now slightly more optimistic: instead of 65,000 to 70,000 deliveries, Rivian now expects 67,000 to 70,000 vehicles. The forecast for adjusted EBITDA was raised by $100 million to -$1.85 billion to -$1.75 billion. Rivian cites higher expected revenues from regulatory credits, a refund from U.S. import tariffs recorded in the third quarter, and the prospect of more vehicle deliveries as reasons for this improvement. The planned investment expenditures are set to be 300 million dollars lower, ranging now between 1.4 and 1.5 billion dollars.