Rivian $RIVN ( ▲ 26.64% ) shares jumped in after-hours trading after the electric vehicle maker delivered fourth-quarter results that beat Wall Street’s expectations, even as overall revenue declined year over year. The company reported $1.29 billion in Q4 revenue, topping estimates of $1.26 billion despite a 26% drop from last year, while its adjusted loss of $0.54 per share was narrower than the expected $0.68 loss.
The quarter came during the phaseout of US federal EV tax credits, a headwind that weighed on demand across the industry. Still, investors focused on the better-than-feared performance and signs that Rivian’s cost discipline may be improving.
Losses persist, but the runway is clear
Rivian expects full-year adjusted losses between $1.8 billion and $2.1 billion, slightly worse than Wall Street’s $1.75 billion forecast. That outlook underscores a familiar reality for EV startups: scaling production remains expensive, and profitability is still down the road.
However, the company continues to build toward higher volumes, which are critical for improving margins. Last year, Rivian delivered just over 42,000 vehicles, a figure it hopes to significantly increase in the coming years.
The R2 could change everything
The real excitement centers on the upcoming R2 SUV, Rivian’s more affordable $45,000 model aimed squarely at the mass market. Deliveries are expected to begin in the second quarter of 2026, marking a major milestone for the company’s growth strategy.
Rivian guided for 62,000 to 67,000 total vehicle deliveries this year, roughly in line with expectations, with analysts projecting about 14,700 of those will be R2 units. Early reviews of pre-production vehicles have been encouraging, according to CEO RJ Scaringe, fueling hopes that the R2 could broaden Rivian’s customer base beyond early adopters.
If the launch goes smoothly, the R2 has the potential to transform Rivian from a niche premium EV maker into a serious mainstream competitor—exactly the leap investors have been waiting for.