By Al Root
Rivian had a busy quarter, reporting a narrower-than-expected first-quarter loss, which is good news. Investors don't care right now. They are focused on the R2.
Rivian reported late Thursday an adjusted operating loss, which is gross profits less adjusted operating expenses, of $621 million from sales of $1.4 billion. Wall Street was expecting a $819 million loss on $1.4 billion in sales, according to FactSet. A year ago, Rivian reported an adjusted loss of $424 million on $1.2 billion in sales.
Quarterly gross profit was $119 million, better than the $56 million analysts projected.
The narrower loss and better gross profit show solid cost control. Sales are up with deliveries. Rivian delivered 10,365 vehicles in the first quarter, up from 8,640 delivered in the first quarter of 2025.
Rivian stock rose initially after results were released but gave up the gains, falling 8.4% on Friday to $15.32, while the S&P 500 rose 0.3% and the Dow Jones Industrial Average fell 0.3%.
The quarter didn't look too bad. Canaccord analyst George Gianarikas called the results relatively in line in a note on Thursday. Barclays analyst Dan Levy said the quarter "did little to change perception."
Rivian still expects to deliver between 62,000 and 67,000 cars in 2026, the same as guidance given in February, up from about 42,000 vehicles sold in 2025.
Rivian is launching new, lower-priced models this year, called R2. Initial deliveries to employees have started. External deliveries are expected in the coming weeks.
Selling the new R2 models is a milestone for the company, one expected to boost sales growth. Ramping up production is still the key catalyst for the stock, according to several Wall Street analysts.
Rivian also had some capacity news for investors to digest. It is increasing production at its new Georgia plant to 300,000 vehicles a year, from 200,000. A $4.5 billion Energy Department loan update will help. Rivian now expects to draw on the loan by early 2027. The plant is slated to produce in 2028.
Rivian is zigging while other car companies are zagging. Ford Motor and General Motors have recently written off billions in EV investments due to flagging demand and the loss of the $7,500 federal EV purchase tax credit, which expired in September.
Still, Rivian only makes EVs. And higher production from existing facilities will help lower per-unit costs, which is important for Rivain to achieve profitability. Currently, Wall Street sees positive operating income in 2030, when annual vehicle sales are projected to reach about 370,000 units.
Rivian ended the quarter with about $5.4 billion in cash and additional liquidity. Wall Street projects cash use of $3.8 billion in 2026.
Coming into Thursday trading, Rivian's stock was down about 19% year to date.
Shares were up about 21% over the past 12 months. Still, expectations for EV sales are not what they once were. Rivian stock was down 90% from its all-time high of almost $180 a share reached in November 2021, shortly after its IPO.
Back then, Wall Street was expecting Rivian to sell hundreds of thousands of EVs annually by 2026. The company will end up selling closer to 60,000.
It isn't Rivian's fault. EV demand in America simply hasn't materialized as the industry once expected. EVs account for roughly 6% of new car sales in the U.S. In Europe, that number is closer to 20%.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 01, 2026 16:31 ET (20:31 GMT)
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