Sales Data Indicates Rivian Requires Budget-Friendly Models Soon | Carscoops

      Production of Rivian's more affordable R2 models is set to start next year.

      15 hours ago

      by Brad Anderson

      The electric vehicle manufacturer delivered a total of 10,661 vehicles in the second quarter of this year. Rivian anticipates ending 2025 with deliveries ranging from 40,000 to 46,000 vehicles. Last quarter, the company secured a $1 billion equity investment from Volkswagen Group.

      While the Rivian R1S and R1T are excellent electric vehicles, it seems the automaker is recognizing that the market for cars priced over $70,000 is limited. Recently released sales data indicate a substantial drop in Rivian's vehicle deliveries during the second quarter, highlighting the need for the smaller R2 and R3 models to begin production.

      Rivian reported that between April and June, it manufactured 5,979 vehicles at its facility in Normal, Illinois, and delivered 10,661 cars. This reflects a 22.7 percent decrease compared to the same quarter in 2024, and the 5,979 EVs produced are considerably lower than the 9,612 units built in the previous year.

      It should be noted that the company itself reduced production to prepare its factory for the upcoming 2026 model year R1T and R1S.

      Challenges Ahead

      Rivian may face tougher times before things improve. The federal EV tax credit of $7,500 will officially end on September 30, resulting in an effective price increase for all qualifying EVs by that amount. Although Rivian's vehicles were not eligible for this credit, customers who leased them could have benefited from the full $7,500. With the new legislation taking effect, this loophole is being closed. Regardless, the American EV manufacturer expects to achieve deliveries between 40,000 and 46,000 vehicles by the end of 2025.

      A glimmer of good news for the brand came on June 30, when it received a $1 billion equity investment from Volkswagen Group. This is part of a $5.8 billion agreement to partner on a joint technology initiative and to implement Rivian systems across VW's lineup.

      The company aims to increase production and deliveries in 2026, with the smaller R2 series expected to enter production next year, making Rivian's models more accessible to a broader range of buyers.