Rivian's stock price fell by over 12% during the first half of 2026.
The company keeps burning through money to ramp up production.
A new plant in Georgia should help the company get closer to profitability, but that could still be years away.
On Jan. 2, 2026, shares of electric-vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) opened at $19.78. On June 30, which marked the end of the first six months of the trading year, Rivian's stock price closed at $17.35, down 12.2%.
Anyone who invested $1,000 at the start of the year is now looking at a loss in that investment. For the second half of 2026, Rivian could still reverse that decline, but meaningful stock price gains from today's levels are likely still a few years away.
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Through online brokers, investors can buy fractional shares of companies like Rivian, so they don't need to buy a whole share. Instead, they can invest specific dollar amounts, like $1,000. Any investor who bought $1,000 worth of Rivian on Jan. 2 at $19.78 would have about 50 shares. At the closing of the June 30 trading day, with shares at $17.35, that $1,000 investment would then have been worth around $877.
That stock price decline has been largely due to the company continually burning cash as it builds up the infrastructure needed to ramp up production. In Rivian's 2026 first-quarter earnings results, capital expenditures climbed from $338 million in the first quarter of 2025 to $372 million in the first quarter of 2026.
Operating expenses also climbed, and the company was making less on its revenue, with gross margin falling from 17% in Q1 2025 to 9% in Q1 2026. For the first quarter of 2026, Rivian reported a net loss of $416 million, down from the year-ago total of $541 million, but still a loss.
One of Rivian's big issues now is reaching the scale needed to become profitable. The good news for shareholders is that it's working on scalability with a new production plant in Georgia.
That plant is expected to produce the company's SUVs, pickup trucks, a crossover vehicle, robotaxis, and delivery vans. "Georgia brings the volume to generate the gross margin for the vehicle sales that covers everything," CEO RJ Scaringe told CNBC in an interview. He added:
The good news is that we have started to really reduce our burn rate. That's the beauty of volume, and of these vehicles being cash flow positive at the vehicle level.
The plant is expected to start producing vehicles in 2028 and reach its full capacity by 2030.
If Rivian can execute on increasing its production scale and get closer to profitability, that will easily drive the stock price higher. That will, however, take time, and there's always the chance the production timeline will be pushed back. Also, even if production capacity is increased, there's the risk that Rivian doesn't see the demand it expects.
A lot hinges on the production plant in Georgia, placing Rivian in the high-risk, high-reward investment category.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.