Rivian's R2 Overtakes R1 as Top Seller Amid Georgia Plant Expansion

Rivian's R2 midsize SUV has replaced the R1 as the company's highest-volume model, according to earnings data released Thursday for the third quarter of 2026. The shift marks a notable change in the electric vehicle maker's sales mix, a company that previously relied on the larger R1 for the bulk of its deliveries. This development carries weight because the R2 is the primary model scheduled for assembly at Rivian's new manufacturing plant, which is currently under construction an hour east of Atlanta.

Founder and CEO R.J. Scaringe confirmed the sales inversion in a news release. "We had great results with R2 becoming our best selling vehicle by volume in the third quarter," Scaringe said. He noted that customer and media feedback on the vehicle has been exceptional. The company did not provide a specific unit count for the R2 in the release, but the shift in ranking signals a change in consumer preference toward the lower-cost, midsize option.

Financial results for the quarter showed a complex picture of growth and pressure. Rivian reported revenue of $2.2 billion, up 83% from the same period last year. However, the company also posted a net loss of $319 million, a decrease from the $3.2 billion loss in the third quarter of 2025. Adjusted EBITDA loss improved to about $550 million from $1.2 billion in the prior-year quarter. Gross profit declined, and operating expenses remained elevated due to ongoing engineering and construction costs.

The Georgia facility, located near Hinesville, represents a major capital commitment. Rivian has invested $1.5 billion in the project to date, with total construction costs expected to reach $5 billion. The state has contributed $75 million in incentives, part of a larger local package that includes $50 million in tax credits. The plant is designed to produce the R2 and future models, the R3 and R3X, which Scaringe said hinge on consumer demand justifying increased production. Current construction has reached the foundation and steel framing stages.

Supply chain adjustments are central to the R2's success. The vehicle is built on a lower-cost platform that allows for greater manufacturing flexibility. Rivian stated that the R2's production ramp has been faster than initially forecasted. The company has added $31 million in capacity to its existing facilities to handle the increased volume. This expansion was necessary to meet the higher demand recorded in the quarter, which saw total deliveries reach 9,157 units. The R2 accounted for a growing share of these deliveries, though exact figures were not broken out in the release.

Chief Financial Officer Claire McDaniel addressed the balance sheet in an earnings call. She noted that the company's cash position remained strong, with $4.6 billion in cash and short-term investments. McDaniel said the company is managing its burn rate carefully while scaling production. "We're seeing a hard logistical challenge," she said, referring to the increased complexity of managing supply chains for a growing fleet of vehicles. The company expects to maintain its current cash trajectory into the fourth quarter.

The shift in sales has implications for Rivian's regional economic footprint. The company employs approximately 3,000 people at the Georgia site, with more hires planned as construction progresses. Local officials in Georgia and South Carolina, where Rivian has additional operations, have cited the investment as a key driver for the region's manufacturing sector. The plant's location near the Savannah-Hinesville corridor places it close to major logistics hubs and port facilities, a factor Rivian cited in its site selection.

Rivian's stock price reacted to the earnings report, closing higher on Thursday. The company's shares had traded in a range of $12 to $15 over the past year, and the R2 sales milestone provided a positive catalyst for investors. The next major milestone for the plant is the completion of the roof and enclosure, scheduled for early 2027. Full production of the R2 at the Georgia facility is not expected to begin until late 2027, according to company timelines.