Rivian Bets 2027 Turns Around $12,000 Per Car Cost Drop

Rivian Automotive is positioning 2027 as the year its business model finally works.

The company marked its fifth anniversary as a public entity on Monday. Its shares have lost more than 80 percent of their value since the initial offering in November 2021 at $78 per share. That decline includes a drop of nearly 30 percent over the last twelve months.

Rivian delivered a record 19,248 vehicles in the third quarter of 2026. That figure represents a 46 percent increase compared to the same period last year. The midsize R2 SUV is now the best-selling model by volume. It outpaces the flagship R1 and commercial vans. The R2 has an entry-level price of approximately $45,000.

CEO RJ Scaringe told CNBC that the R2 is the core vehicle for showcasing new technologies. He stated that the path to profitability relies on this model and its future variants. Manufacturing efficiency has improved in the most recent quarter. The automotive cost of goods sold per vehicle dropped by more than $12,000. This improvement is driven by a higher mix of R2 units and better fixed-cost leverage.

The overall automotive business posted an $80 million gross loss in that period. The software and services unit generated $256 million in gross profit. That segment operated with a 42 percent margin.

Rivian is building a new multibillion-dollar factory in Georgia. The current plant in Illinois has an annual capacity of 215,000 vehicles. The new Georgia facility is expected to reach an initial capacity of 300,000 units per year by late 2028. Scaringe said the company is pursuing profitability while deeply investing in technology. This includes autonomy, which he refers to as physical artificial intelligence.

Rivian reported ending the third quarter with $5.5 billion in cash, cash equivalents, and short-term investments. The company expects total available future liquidity to be around $13 billion. This total includes credit lines, partnerships with Volkswagen and Uber, and a $4.5 billion loan from the U.S. Department of Energy for the Georgia plant.

Rivian plans to release point-to-point driving capabilities in the coming weeks and months. This feature will allow vehicles to drive independently between destinations with the driver acting as a monitor. Scaringe said the company aims to exceed Tesla's capabilities by using multiple sensor types to improve visibility in inclement weather. Autonomous vehicles operating with Uber are expected by 2028. TD Cowen analyst Itay Michaeli rated the stock overweight with a target price of $17.70. That price represents a roughly 26 percent increase from the recent closing price.