Rivian reported its first quarter earnings of 2026, showing a 11.3% increase in revenue to $1.38 billion compared to the same period last year. Despite an 11.3% rise from automotive sales alone, Rivian is seeing significant growth from software and subscription services, which grew by 48.7%. The company sold 10,365 vehicles, a 20% increase over the previous year.

Rivian’s financial health hinges on its new R2 electric vehicle, already in production at its factory in Normal, Illinois. With an affordable base model set to launch in late 2027 and high-end variants priced up to $57,000, Rivian hopes the R2 will bolster sales as EV demand cools post-federal tax credit expiration.

Rivian’s gross profits fell by 42% year over year, largely due to a decrease in automotive regulatory credits and lower production volumes. However, the company is optimistic about hitting positive gross profit margins by the end of 2026. Meanwhile, it has hit key milestones like designing its own AI chips for future vehicles and securing an additional $1 billion from Volkswagen’s investment.

A major deal with Uber to supply tens of thousands of R2s as robotaxis is another feather in Rivian’s cap. Together with these initiatives, Rivian aims to sell over 67,000 vehicles this year, despite a recent tornado damaging part of its factory.