Key highlights:
- Rivian shares jumped about 8%
- This comes after the company increased its 2026 delivery guidance
- Rivian now expects to deliver between 65,000 and 70,000 vehicles in 2026
Rivian stock saw gains of over 8% after the firm reported stronger-than-expected second-quarter deliveries and raised its full-year delivery forecast.
The update gave investors some relief that the firm is still gaining momentum at a time when many EV companies are facing slower demand and affordability concerns.
The company said it expects to deliver between 65,000 and 70,000 vehicles in 2026, up from its previous prediction of 62,000 to 67,000 vehicles. The changed outlook is also above the average analyst estimate of about 63,100 vehicles for the year.
Rivian beats delivery expectations
In its press release, Rivian reported that it produced 12,613 vehicles and delivered 12,194 vehicles during the second quarter of the year. Those numbers beat its analyst expectations and the company’s forecast range of 9,000 to 11,000 vehicles.
The company said the demand was thanks to its electric delivery vans, its R1 pickup trucks and SUVs, and the launch of the new R2 SUV.
The R2 is a major part of the firm’s long-term growth plans. Customer deliveries of the vehicle began in June, and the company said the lower-priced SUV can help attract buyers who may find premium EVs too expensive.
The company is increasing production of the R2 at its manufacturing facility in Normal, Illinois. The plant has the capacity to produce up to 160,000 vehicles annually.
Meanwhile, this performance means Rivian will now need to deliver at least 45,000 more vehicles during the second half of the year to meet the midpoint of its updated target.
R2 SUV could play a major role in growth
The launch of the R2 is particularly important for its future growth. The company is banking on the model to directly compete with other popular vehicles like Tesla’s Model Y.
The launch version of the R2 starts at $57,990, while a premium variant is expected later this year at $53,990. Another rear-wheel-drive version is planned for early next year. To add, a model at a more affordable price of $45,000 is expected by late 2027.
Interestingly, earlier this year, Uber said it plans to invest up to $1.25 billion in Rivian as part of an agreement that could see 10,000 autonomous R2 SUVs deployed as robotaxis from 2028. This means interest isn’t consumer-based only.
The company is also putting more capital into self-driving technology. Rivian introduced its Gen 3 Autonomy Computer and is working towards offering more advanced hands-free driving features in its vehicles.
Analysts stay bullish
The new guidance report has also strengthened the bullish case of many Wall Street analysts.
BNP Paribas is one of the most optimistic firms projecting growth for the company and its shares. Although it had reduced its price target from $23 to $22 per share. However, that target is still above the analyst average of about $18.57.
According to them, future growth will depend on the company’s ability to launch advanced autonomous driving features.
“Rivian’s 2026 will be defined by the Co.’s ability to offer FSD-like ‘point-to-point’ hands-free driving by year-end,” BNP Paribas analysts shared.