Rivian Stock Under $20 -- Is Now the Time to Buy?
Key Points
Rivian anticipates vehicle deliveries increasing in 2026 to 62,000 to 67,000.
The company posted a gross profit of $144 million in 2025, largely due to its joint venture with Volkswagen.
The EV maker's stock is still down 10% year to date.
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Rivian (NASDAQ: RIVN) is on an upswing now, but the stock is still trading under $20. The company has a big year ahead as it readies to deliver the new R2 fleet of electric vehicles. A lot is at stake for Rivian in 2026, but the company is showing signs it's on the path to profitability. So is now the time to buy? Let's have a look at why investors should consider the EV manufacturer for their portfolios.
The R2 launch is imminent
Excitement is building as Rivian gears up to deliver its fleet of R2 vehicles to customers. In the company's earnings report released on Feb. 12, Rivian stated the R2 fleet would be ready for delivery in the second quarter of 2026.
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The goal of the R2 is to provide a luxury SUV experience at a more reasonable price. The R2 fleet starts at $45,000. This price change is a substantial drop from the $75,000-plus price of its other vehicles.
This pricing moves Rivian from a strictly luxury brand into the mass market and will test consumers' appetite for electric SUVs. Electric vehicle sales have slowed dramatically in recent months, but according to Rivian founder and CEO RJ Scaringe, more than 68,000 R2s were reserved within the first 24 hours of the new fleet announcement back in 2024.
Rivian is ramping up deliveries
In 2025, Rivian delivered 42,247 vehicles to its customers. In its 2026 guidance, Rivian said deliveries should reach 62,000 to 67,000, a sharp increase from this past year and a sign the R2 should help significantly with sales.
Partnership with Volkswagen is strengthening the balance sheet
Rivian's partnership with Volkswagen is providing a much-needed boost to the EV maker's balance sheet. Through this joint venture, Rivian is providing its engineering and technology prowess as a service. Rivian posted $576 million in software and services gross profit in 2025.
Because of the joint venture's success, Rivian's overall gross profit was $144 million. Its automotive segment lost $432 million. The 2025 automotive loss is significantly less than the 2024 loss of $1.2 billion, however.
Rivian stock is down more than 10% year to date as of Feb. 13, and it remains quite volatile, with a beta of 1.77. As the EV manufacturer prepares for the launch of R2, execution risk remains due to supply chain issues, according to Scaringe. Still, the CEO said the company has learned a lot about navigating these challenges.
If the R2 fleet lives up to the hype, it looks like clearer roads are on the horizon for Rivian.
Should you buy stock in Rivian Automotive right now?
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Catie Hogan has positions in Rivian Automotive. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.
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