Rivian, the U.S. electric vehicle maker, delivered 42,247 vehicles in 2025, down about 18 percent from the previous year. Rivian produced 42,284 electric vehicles for the full year 2025.
For the fourth quarter ended December 31, Rivian produced 10,974 vehicles at its manufacturing facility in Normal, Illinois and delivered 9,745 units.
The results underscore the challenges facing premium EV manufacturers as demand weakens following the expiration of the 7,500 dollar U.S. federal tax credit at the end of September, which pushed effective vehicle prices higher across the market.
For the 2026 model year, Rivian raised prices slightly across most R1T and R1S trims, typically by about $90–$1,090 compared with the prior year. The destination fee also rose a bit. These are relatively small adjustments bringing base prices up modestly.
In 2024, Rivian reduced prices on some R1T and R1S models by around $3,100, while also introducing a new mid‑range battery pack to balance range and affordability.
Rivian raised prices on certain versions (like dual‑motor R1T variants) by about $2,000, but bundled previously optional equipment — like power tonneau covers and improved utility parts — into the base price, adding value while increasing MSRP.
A past significant price hike (up to roughly $12,000 on select R1T/R1S variants) drew backlash, leading Rivian to restore original pricing for customers who had reservations at the earlier prices.
Rivian’s upcoming R2 SUV is targeted to start around $45,000 USD, a much lower entry point than the R1T/R1S range. This reflects a strategic shift toward broader market appeal and more volume‐oriented pricing once the model launches in expected 2026.
Premium EV demand under pressure
Rivian, which sells the R1T pickup truck and R1S SUV at premium price points, has been particularly exposed to the slowdown. Higher borrowing costs and the loss of tax incentives have increased scrutiny on whether demand for Rivian’s vehicles can remain resilient as the company continues to scale production.
Efficiency drive at Illinois plant
To narrow losses, Rivian has implemented efficiency measures at its Normal, Illinois manufacturing facility. The company is simplifying vehicle components and reducing material and manufacturing costs, aiming to improve margins without relying solely on higher sales volumes.
Focus shifts to lower-cost R2 SUV
Looking ahead, investor attention is increasingly centered on Rivian’s upcoming R2 SUV, a smaller and lower-priced model expected to enter production and begin deliveries in the first half of 2026. The R2 is positioned to compete more directly with mass-market electric vehicles, including Tesla’s best-selling Model Y.
Analysts see the success of the R2 as critical to Rivian’s long-term growth strategy, as it could significantly broaden the company’s addressable market and reduce its reliance on premium-priced vehicles.
Rivian said it will release its fourth-quarter and full-year 2025 financial results on February 12, when investors are expected to seek more clarity on demand trends, cost reductions and the timeline for improved profitability in a challenging EV market.
BABURAJAN KIZHAKEDATH