Key insights
- Rivian has commenced customer deliveries of its R2 mid-size SUV, a significant step for the company's growth trajectory. While production is underway and initial deliveries are rolling out, the R2's success hinges on scaling production and improving profitability, which remains a challenge with current gross profit margins. This development could positively impact investor sentiment and Rivian's stock performance, though broader EV market dynamics and competitive pressures will be key factors.
IRVINE, Calif. - Rivian Automotive Inc. (NASDAQ:RIVN) announced today that it has started delivering its R2 mid-size electric SUV to public customers, with production underway at its Normal, Illinois facility. The $21.55 billion company’s shares have gained 17% over the past year, though InvestingPro analysis suggests the stock remains undervalued at current levels near $16.84.
The company began employee deliveries in April and is now extending order invitations to existing reservation holders on a rolling basis, according to a press release statement.
The R2 was unveiled on March 7, 2024. Initial deliveries include the R2 Performance with Launch Package, priced at $57,990 before taxes and fees. The R2 Premium configuration will follow in late 2026, with multiple R2 Standard configurations arriving through 2027.
The vehicle is built on a new mid-size platform with a 115.6-inch wheelbase and weighs nearly 2,000 pounds less than Rivian’s R1 models. The R2 offers 9.6 inches of ground clearance and 90.1 cubic feet of total storage with seats folded.
Reservation holders will receive order invitations based on reservation timing and delivery location. Current Rivian owners will receive accelerated delivery timing. All reservation holders will receive delivery estimates by the end of June. Confirmed orders can be delivered within two to six weeks.
The R2 Performance with Launch Package features dual-motor all-wheel drive producing 656 horsepower, 0-60 mph acceleration in 3.6 seconds, and an EPA-estimated range of up to 330 miles. The trim includes Autonomy+ hands-free driving assistance covering 3.5 million miles of roads in the U.S. and Canada.
The R2 Premium trim starts at $53,990, while R2 Standard configurations will range from $44,990 to $48,490 depending on the version. The R2 launch comes as analysts forecast 33% revenue growth for the company this year, though Rivian continues to face profitability challenges with gross profit margins of just 1%. According to InvestingPro Tips, nine analysts have recently revised their earnings estimates upward. Want deeper insights? InvestingPro offers 11 additional exclusive tips for RIVN, plus comprehensive Pro Research Reports covering over 1,400 US stocks.
Rivian is constructing a second manufacturing facility in Stanton Springs, Georgia, expected to begin vehicle assembly in late 2028 with initial capacity for up to 300,000 units annually.
Reservations remain open with a $100 refundable deposit.
In other recent news, Rivian Automotive Inc. reported its first-quarter 2026 earnings, surpassing expectations with a narrower-than-anticipated loss of $0.33 per share, compared to the forecasted loss of $0.63. The company’s revenue also exceeded projections, reaching $1.38 billion against the expected $1.36 billion. Additionally, the National Highway Traffic Safety Administration has launched a probe into Rivian over a potential defect in the rear toe link of approximately 115,000 R1 electric pickups and SUVs. This investigation was prompted by two complaints from owners who experienced issues leading to loss of vehicle control, with one incident resulting in a collision.
Meanwhile, Rivian’s Chief Executive RJ Scaringe’s startup, Mind Robotics, successfully raised $400 million in a funding round led by Kleiner Perkins, with contributions from Salesforce Ventures and Incharge Capital. DA Davidson raised its price target for Rivian to $15 from $14, maintaining a Neutral rating on the stock, citing progress on the company’s R2 vehicle. The R2 model appears to be on schedule, with salable units now being produced. These developments highlight ongoing challenges and advancements for Rivian and its associated ventures.
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