Rivian Adjusts to Shaky EV Market
EV startup Rivian is now offering lease discounts on its electric pickups as the broader market shows signs of volatility. The move comes as competitors like Ford scale back EV plans, and Rivian's CFO publicly defended the pace of its joint venture with Volkswagen amid reports of delays.
The EV maker achieved its first full year of positive gross profit in 2025, reporting $144 million—a more than $1.3 billion improvement from its $1.2 billion gross loss in 2024. Despite this, the company still posted a net loss of $3.6 billion for the year and burned through roughly $2.5 billion in free cash flow. Rivian's software and services revenue surged by 222% to $1.56 billion in 2025, a bright spot largely attributed to its joint venture with Volkswagen. This high-margin segment is critical as Rivian still loses money on each vehicle produced, though that per-vehicle loss improved significantly from $23,401 in 2024 to $10,266 in 2025. The Volkswagen partnership has faced headwinds, with German media reporting significant delays on joint software development. Disagreements reportedly center on integrating Rivian's EV-only software with VW's broader portfolio, which will retain combustion engines longer than planned, allegedly postponing new electric models from Audi and Porsche. Ford's strategic pivot away from large EVs involves indefinitely halting production of its F-150 Lightning pickup. The company, which took a $19.5 billion charge against earnings for its EV restructuring, now plans to offer a hybrid powertrain option for nearly every vehicle in its lineup by 2030. In 2025, Rivian produced 42,284 vehicles and delivered 42,247. For 2026, the company is forecasting a significant ramp-up, projecting deliveries to fall between 62,000 and 67,000 vehicles. All eyes are on the upcoming R2, a smaller, mid-size SUV with a target starting price around $45,000, which is crucial for the company's long-term volume and profitability goals. The full reveal of the R2 platform is scheduled for March 12, 2026, with first customer deliveries anticipated in the second quarter of the year.
