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Rivian Automotive Inc., which has faced a lot of investor criticism about whether it can survive, has proven one thing for certain—its vehicles are popular.
The Irvine-based maker of electric vehicles more than doubled its annual revenue over the past two years to $5 billion, up from $1.7 billion in sales in 2022.
For the second straight year, the company maintained its No. 1 ranking among public companies with more than $500 million in 2024 revenue.
Despite production slowdowns and market uncertainties, the Irvine-based EV-maker has made strides in cost efficiency, expanded manufacturing capabilities and secured key investments—including a major joint venture with Volkswagen. The company is also set to launch its lower-price point R2 model in 2026.
Ramping up Production
Vehicle production has also increased from more than 24,000 units in 2022 to over 49,000 in 2024.
However, last year’s annual vehicle production did stumble from 57,232 in 2023. Rivian cited changes to government policies and regulations as well as a challenging demand environment; it has forecasted the delivery of 46,000 to 51,000 vehicles in 2025.
“The delivery guidance highlights the continued uncertainty within the EV market amidst possible incentive/policy/tariff changes,” Truist analyst Jordan Levy wrote in a note to investors. “While (management) could be baking in additional conservatism into the guide given the overall uncertainty, lower YoY deliveries could negate some of the investor optimism.”
In the fourth quarter of last year, Rivian “achieved positive gross profit (for the first time) and removed $31,000 in automotive cost of goods sold per vehicle delivered,” Chief Executive RJ Scaringe said in a statement.
The Business Journal’s annual ranking uses a two-year period for revenue to smooth out unusual bumpiness. Sales last year grew 12% while revenue this year is expected to climb 8.5% to $5.39 billion and then jump 40% to $7.5 billion in 2026, according to the analyst consensus.
The company is expanding its factory in Normal, Illinois, and is building a new facility in Georgia.
Expectations are also high for Rivian’s recent collaboration with Volkswagen and an approved loan from the Department of Energy (DOE).
“We hold the deep conviction that the entire automotive industry will electrify over the long-term,” a Rivian spokesperson told the Business Journal. “Rivian has been built to help accelerate the transition. The opportunity ahead is substantial and we are focused on designing our organization, strategy, and products to capture this.”
Votes of Confidence
Analysts say the company shows signs that it can maintain its growth trajectory due to a partnership with one of the world’s largest automobile manufacturers and a deal made with the country’s previous administration.
In 2024, the EV maker entered a joint venture with Volkswagen that secured up to $5.8 billion in funding to further develop in-vehicle software.
“Rivian and Volkswagen Group Technologies is focused on creating industry leading next generation zonal architecture and software for Volkswagen and Rivian’s electric vehicle platforms,” a Rivian spokesperson said.
Analysts from Truist expect Rivian to receive a “revenue uplift” and “margin boost” from the automaker’s software segment that will be driven by the JV.
“We’re positive on the financial benefits from this growing revenue stream,” analyst Levy said.
“Both autonomy and software & services were areas of increased interest on the (earnings) call which we believe may become more prominent with the R2 launch still roughly a year away,” a Baird analyst wrote in a March 18 report.
On Jan. 16, a $6 billion loan from the DOE was approved by the outgoing Biden administration that will go towards the building of Rivian’s proposed Georgia plant.
Levy noted that Volkswagen’s involvement and the DOE loan have helped stabilize Rivian’s recent financial situation.
At press time, shares were trading at $12.10 with a market cap of $14 billion. The company’s market cap soared above $120 billion after its IPO in 2021.
On Track to Launch R2
Rivian remains on track to launch its R2 models in 2026, positioning them at a lower price point to attract a broader consumer base.
To support production, the company is constructing a 1.1 million-square-foot expansion on the east side of its 4.3 million-square-foot plant in Normal, Illinois. Exterior work is expected to be completed in the second quarter, Rivian said in an online update.
Once renovations are finished, the automaker aims to boost the factory’s annual capacity to 215,000 vehicles, including its R1 models and commercial vans. That’s up from 150,000 units, according to reports.
“The faster we can get the buildings up and the utilities in place, the sooner our manufacturing engineering colleagues can begin to set and connect equipment with their integrators,” VP of Production Facilities Tony Sanger said. “All of this will bring the R2 into our customers hands more quickly.”
Rivian also reported that the physical expansion will keep R2 production on time to begin deliveries in 2026 as planned as well as reduce capital costs.
“[We] should be ramped and producing salable vehicles in the first half of next year,” Sanger added.
As for 2025, Rivian will soon begin the deliveries of its commercial van orders that opened to the public in February and its quad-motor R1 vehicles later this year.
First quarter production and deliveries will be reported on April 2.
Expanding Rivian Spaces
Rivian is expanding its physical retail presence across the U.S. with additional showrooms, which the company refers to as Spaces. As of March, the company operates 23 locations across multiple states.
Rivian opened its first retail space in 2021 in Venice, California, repurposing the former home of author Ray Bradbury. This launch set the tone for the company’s strategy of adapting existing properties into EV showrooms rather than constructing new buildings.
Since then, Rivian has introduced multiple showroom formats, including three flagship locations in Laguna Beach, San Francisco and Austin. These larger sites offer a more immersive brand experience compared to the smaller footprints, which average 3,800 square feet.
The company focuses on securing high-traffic locations, such as shopping centers, to maximize consumer engagement.
“(It’s) essential for Rivian to partner with first-class operators and scalable partners as it develops and executes its go-to-market strategy,” executives said in a statement.
The most recent space opened at Irvine Spectrum Center in March, taking over a former Hurley store.
It “strengthens our deep connection with Irvine, a city that serves as Rivian’s second home with many of our key offices located here,” said Rivian’s Sara Webster Wiley, director of Spaces marketing. “This new location allows us to expand our presence with the local community and share our vision of adventure and sustainability with an even wider audience.”
Two more showrooms are set to open in April and Rivian should end the year with 35 locations in total, up from 10 in 2023 and 18 in 2024.
“Our goal with Rivian spaces is to provide opportunities for the brand to grow, connect with current and future Rivian vehicle owners in key locations,” according to Rivian. “We hope to continue to grow and expand our presence in new markets.”
Rivian’s “Micro” Idea Goes Solo
Rivian Automotive Inc. had another trick up its sleeve.
This month the automaker launched Also Inc., a spinoff of its micromobility business that provides smaller, lightweight electric vehicles such as scooters, skateboards and bicycles.
What started as a “stealth program” at Rivian focused on micromobility using its software and electric propulsion several years ago has now gained a $105 million investment from the venture capital fund Eclipse Ventures for its next phase of growth as a separate entity.
Rivian remains a minority shareholder in the new startup with Founder and CEO RJ Scaringe to sit on the board as chairman.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” Scaringe said in a statement. “I am extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products that will help define new categories.”
Also Inc. will be based in Palo Alto, according to state filings.