TLDR
- Rivian stock dropped 6.6% on Tuesday, closing at $15.73, despite beginning R2 SUV deliveries
- The R2 starts at $57,990 for the Launch Package trim, with a sub-$50,000 version expected in early 2027
- Rivian moved up its entry-level R2 timeline from late 2027 to next summer
- The company delivered 42,247 vehicles in 2025; Wall Street projects 220,000 by 2028
- Rivian is down 21% year to date but up 7% over the past 12 months
Rivian kicked off R2 deliveries on Tuesday, but the stock market wasn’t in a celebrating mood. Rivian (RIVN) stock fell 6.6%, closing at $15.73 after touching an intraday high of $16.92, even as the company handed over its first R2 SUVs to reservation holders.
The drop came on a broadly weak day. The S&P 500 fell 0.3%, with macro concerns around inflation and potential rate hikes weighing on sentiment across the board.
The R2 is Rivian’s lower-priced second-generation EV, sitting well below its R1S SUV, which starts at around $77,000. The Launch Package trim of the R2 opens at $57,990, with CEO RJ Scaringe saying he expects the sales sweet spot to land in the low $50,000s once full production is running.
We drove the Rivian R2. With a great design and real off-road capability, it's the Tesla Model Y's first real threat.
Read more: https://t.co/5PpAmUkXPu pic.twitter.com/W2bXwf6fYb
— Motor1 (@Motor1com) June 9, 2026
A sub-$50,000 version isn’t expected until the first half of 2027.
One piece of good news from the event: Rivian pulled forward the timeline for its most affordable R2 configuration, moving it from late 2027 to next summer. Early reviews of the vehicle were largely positive.
Baird analyst Ben Kallo attended the delivery event in Irvine, California, and came away impressed. “We walked away from our test drive wowed,” he wrote, saying the R2 improved on Rivian’s original R1 lineup.
The Road to Profitability
Scaringe was direct about where Rivian stands: the company doesn’t yet have the scale it needs to turn a profit. Rivian reported a third straight quarter of positive gross profit, but its automotive segment still posted a $62 million gross profit loss in Q1.
The company produced 42,247 vehicles last year and recorded $3.6 billion in losses over the same period. A previously stated goal of adjusted profitability by 2027 was quietly dropped earlier this year, with no new target set.
The Georgia manufacturing facility, expected to come online in late 2028, is central to the profitability plan. “Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything,” Scaringe told CNBC.
Wall Street currently doesn’t expect Rivian to post a full-year profit until 2030, when annual sales are projected to exceed 420,000 units.
Tesla Parallels
The R2 launch draws obvious comparisons to Tesla’s Model 3 moment. Tesla sold around 76,000 cars in 2015 before the Model 3 launched in 2017. By 2019, that figure had grown to roughly 368,000. Tesla now sells about 1.8 million vehicles a year.
Rivian is following a similar playbook: start with premium, lower-volume vehicles, then scale with a more affordable model aimed at a broader market.
Tesla stock was around $22 when the Model 3 first shipped. It was roughly 10 times higher by end of 2020.
Heading into Tuesday’s delivery event, Rivian stock had gained 20% over the prior month. On Wednesday, it slipped a further 1.8% in midday trading.
On a year-to-date basis, RIVN is down 21%. Over the past 12 months, it’s up 7%.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
