Rivian cuts 2026 spending by $250M, narrows loss guidance

Rivian Automotive narrowed its loss forecast and cut capital spending plans for 2026, the company announced on July 30, 2026, alongside its second-quarter results. The electric vehicle maker now expects adjusted losses between $1.8 billion and $2 billion, down from a prior range of $1.8 billion to $2.1 billion, while capital expenditures are projected at $1.7 billion to $1.8 billion, reduced from $1.95 billion to $2.05 billion. Rivian attributed the $250 million reduction in capital spending at the mid-point to project efficiencies and timing of spend, after earlier increasing the budget for investments in technologies like its hands-free driving system. The company also reaffirmed its delivery target of 65,000 to 70,000 vehicles for the year, which was previously raised due to higher second-quarter deliveries of its electric delivery van and flagship R1 products.

The revised guidance affects Rivian's path to profitability, as CEO RJ Scaringe has stated the company will reach profitability this year on a per-unit production basis with the new midsize R2 SUV. The R2, a smaller and less expensive sibling to the luxury R1S SUV, began deliveries during the second quarter and is ramping up production at the Normal, Illinois plant, which has an annual capacity of 160,000 units. Scaringe told CNBC's Phil LeBeau that the R2's launch is a major step toward profitability, but he noted that achieving profitability requires more scale than the currently planned 160,000 units at the existing plant.

Rivian's second-quarter performance showed progress, with gross profit reaching $179 million compared to a loss of $206 million a year earlier. The automotive segment posted a $36 million loss, while the software and services division generated a $215 million profit. Revenue totaled $1.14 billion from automotive and $515 million from software and services, slightly exceeding the pre-released expectations of $1.55 billion to $1.65 billion disclosed last month in connection with a public offering of 75 million shares of Class A common stock. Automotive revenue rose 23% year over year, driven by a 14% increase in vehicle deliveries and a $103 million rise in regulatory credit revenues. The net loss attributable to common stockholders narrowed to $837 million, or 63 cents per share, a $278 million improvement from the second quarter of 2025.

Rivian's cash position strengthened, with cash, cash equivalents, and short-term investments estimated at $5.3 billion, up from $4.8 billion at the end of the first quarter. The company expects to receive $1 billion in non-recourse debt financing later this year from its software deal with Volkswagen Group and an additional $250 million equity investment from a partnership with Uber. These financial moves are part of Rivian's broader strategy to support its operations and growth as it scales production of the R2 and works toward sustained profitability.