Rivian experienced an 18% drop in deliveries last year after a record-setting 2024, highlighting the critical importance of its upcoming, more affordable R2 crossover.
When the Rivian R1T launched in 2021, the California-based EV maker seemed poised to continually raise the bar for electric vehicles. Yet, like many EV companies, Rivian faced a sudden market shift, one that became evident in its 2025 delivery numbers.
The company, which currently sells vehicles only in North America, announced on Friday that it delivered 42,247 units in 2025, down 18% from its record 51,579 in 2024.
Fourth-quarter deliveries totaled 9,745, roughly 3,500 fewer than in Q3. While the decline might raise eyebrows, Rivian noted that it was largely anticipated following the loss of federal EV tax credits last September.
With EV prices climbing, Rivian is betting on the R2 to regain momentum and expand its customer base. The R2 is a mid-size electric crossover aimed at competing with the Tesla Model Y, with deliveries expected in the first half of 2026. The model represents one of several industry attempts to meet growing demand for more affordable EVs, alongside new offerings like the Slate Truck.
Pricing will be a key factor for the R2’s success. The vehicle is expected to start at approximately $45,000, positioning it directly against the Tesla Model Y Premium RWD.
Currently, Rivian’s passenger EV lineup consists of just two models: the R1T pickup and the R1S SUV. The all-electric R1T begins at $72,990, while the range-topping Quad variant starts at $115,990, featuring a quad-motor setup that delivers 1,025 horsepower and an EPA-rated range of 374 miles. The R1S, which competes with EVs such as the Tesla Model X and Hyundai Ioniq 9, starts at $76,990.
Looking ahead, Rivian, and other EV-focused brands, will face a market without the incentives that once made widespread EV adoption feel inevitable. Some automakers have already started scaling back their all-electric strategies.
At the same time, combustion-powered vehicles are regaining momentum, exemplified by the return of the Ram 1500 TRX, boasting 777 horsepower from its supercharged 6.2-liter Hemi V8.
While the long-term impact of these market shifts on EV specialists remains uncertain, Rivian plans to release its Q4 earnings report next month, providing further insight into the company’s path forward.
