Rivian Reports 2025 Delivery Decline, Pins Growth Hopes on R2

Rivian said its vehicle deliveries fell 18% in 2025 after losing EV tax credits, making the upcoming R2 crossover central to the company’s future growth.

Rivian ended 2025 with a notable decline in vehicle deliveries, marking a sharp contrast to the record performance achieved a year earlier. The company delivered 42,247 electric vehicles over the year, an 18 percent drop compared with 2024. The slowdown became more pronounced in the fourth quarter, when deliveries fell to 9,745 units, roughly 3,500 fewer than in the previous quarter.

The downturn did not come as a surprise to the market. In September, Rivian lost access to U.S. federal EV tax credits, which had played a meaningful role in supporting demand. With the R1T pickup and R1S SUV positioned at the higher end of the price spectrum, the removal of incentives weighed heavily on sales, particularly as consumer appetite for expensive electric vehicles softened.

Against this backdrop, Rivian’s future momentum increasingly hinges on its next model, the R2. The upcoming crossover is expected to play a central role in broadening the brand’s appeal and restoring growth. Positioned as a midsize electric SUV, the R2 is projected to start at around $45,000, significantly undercutting Rivian’s current lineup, with first deliveries planned for the first half of 2026.

The R2 represents Rivian’s first deliberate push into a more accessible, volume-oriented segment. The company has indicated that the model will be offered with multiple powertrain configurations and is aimed squarely at competitors such as the Tesla Model Y. At the same time, Rivian has spent 2025 focusing on manufacturing efficiency and cost reduction, efforts that are expected to be critical to the R2’s commercial success.

For now, Rivian continues to sell vehicles only in North America, but interest in the R2 extends beyond the region. In Europe, the model is expected to arrive later, with current indications pointing to 2027, although detailed specifications for European markets have yet to be announced.

As government incentives fade and powerful combustion models regain attention, the electric vehicle market is entering a more challenging phase. For Rivian, the coming year will test whether its strategy can succeed without the support that once fueled rapid adoption. Greater clarity is expected when the company releases its fourth-quarter and full-year 2025 financial results in February.