Rivian has lowered its capital expenditure forecast for 2026 to a range of $1.7 billion to $1.8 billion, down from an earlier projection of $1.95 billion to $2.05 billion. This revision came alongside a modest tightening of its adjusted loss guidance for the year, now expected to be between $1.8 billion and $2 billion, compared with a previous range of $1.8 billion to $2.1 billion. Despite these cost reductions, the electric vehicle manufacturer reaffirmed its vehicle delivery target of 65,000 to 70,000 units for the year.

The company reported second-quarter revenue of $1.66 billion, surpassing expectations of $1.51 billion, driven by a 23% year-over-year increase in automotive revenue to $1.14 billion and a strong $515 million from software and services. Gross profit improved significantly to $179 million from a loss of $206 million the previous year, with the automotive segment reporting a $36 million loss and the software division posting a $215 million profit. Rivian also enhanced profitability per unit, with a net loss attributable to common stockholders improving by $278 million year over year to $837 million.

Rivian’s CEO RJ Scaringe highlighted excitement over the launch of the midsize R2 SUV, which began deliveries in the quarter and is produced at the company’s Normal, Illinois plant with a 160,000-unit annual capacity. Scaringe views the R2 as a key step toward achieving profitability, especially at higher production scales. However, he acknowledged the need to expand beyond current planned volumes to fully reach profitability goals, as the R2 is positioned as a more affordable alternative to the luxury R1S SUV.

The company’s financial position remains solid, with $5.3 billion in cash, cash equivalents, and short-term investments as of the second quarter’s end, up from $4.8 billion in the first quarter. Additional financing is expected later this year, including $1 billion in non-recourse debt tied to its software partnership with Volkswagen and a $250 million equity investment from its collaboration with Uber. These arrangements support Rivian’s ongoing development and scaling efforts amid a competitive EV market.