Rivian Automotive, Inc.
Rivian Automotive, Inc., together with its subsidiaries, develops, manufactures, and sells category-defining electric vehicles. It operates through two segments, Automotive, and Software and Services. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand; and a three-row, seven-passenger sport utility vehicle under the R1S name. It also provides software and services, such as vehicle electrical architecture and software development, as well as Autonomy+, remarketing, vehicle repair and maintenance services, software subscriptions, vehicle accessories, financing, insurance, and other services. In addition, the company designs, develops, and manufactures the Rivian Adventure Network Direct Current fast chargers; and FleetOS, a proprietary, end-to-end centralized fleet management subscription platform. Further, it offers Rivian Commercial Van platform for Electric Delivery Van with collaboration with Amazon.com, Inc. Rivian Automotive, Inc. was founded in 2009 and is based in Irvine, California.
What does it do?
Rivian makes electric trucks and SUVs — think of them as the outdoorsy, adventure-focused alternative to Tesla. Their two main products are the R1T (a rugged electric pickup truck) and the R1S (a large electric SUV that seats seven). They also have a deal with Amazon to build electric delivery vans, which you may have already seen in your neighborhood. Everything they make runs entirely on electricity — no gas engine anywhere.
Rivian is one of the few electric vehicle startups that actually made it to mass production, which most of its rivals failed to do. The EV truck market is a massive prize — Ford, GM, and Tesla are all fighting for it — and Rivian has a head start with a loyal early customer base. With their new, cheaper R2 model coming, 2025 and 2026 could be the years that determine whether Rivian becomes a lasting car company or a cautionary tale.
How does it make money?
Rivian makes almost all of its money by selling its R1T trucks and R1S SUVs directly to consumers, generating $5.4 billion in revenue last year, up from $5.0 billion the prior year. They also earn money from their commercial van contract with Amazon, which ordered 100,000 electric delivery vans. A smaller and growing slice of revenue comes from software and services — things like over-the-air software updates, connected vehicle features, and financing. The problem is that despite $5.4 billion in sales, they still lost $3.6 billion, meaning it costs them more to build each vehicle than they charge for it.
Why do investors care?
The core bet on Rivian is that they can reach 'gross profit' — meaning they eventually charge more per vehicle than it costs to build — as production scales up and costs fall. Their upcoming R2 SUV, expected to start around $45,000, targets a much wider audience than their current premium-priced vehicles. If Rivian can fill its Illinois factory efficiently and launch R2 successfully, losses should shrink dramatically. The partnership with Volkswagen, which invested $5 billion to use Rivian's software platform, also adds a major revenue stream that doesn't require building more cars.
Deep Dive
MemberA full investor briefing on Rivian Automotive, Inc. — history, leadership, risks, and outlook.