It hasn't been a spectacular year for electric vehicle (EV) makers. Global EV sales, though, continue to grow, though at a slower rate than last year. The current projections are that 2025 sales will be about 20% higher than 2024 sales.
The picture in the U.S. market is dimmer. EV sales actually declined year over year in the second quarter, and through the first half of 2025, U.S. EV sales only increased by 1.5% year over year.
That helps explain why Rivian Automotive (RIVN -1.57%) deliveries are expected to drop this year. Yet, there is still a compelling reason to buy Rivian stock now.
Image source: Rivian Automotive.
Rivian has catalysts coming
Rivian sales are slumping this year for several reasons. The macroeconomic picture includes intensifying competition even as overall market growth for such vehicles has slowed. General Motors, for example, more than doubled its EV sales year over year to about 78,000 in the first half of 2025. Many consumers may also be holding off on car purchases due to EV tax credit changes or tariff-related uncertainty. Additionally, Rivian hasn't been manufacturing more cars this year than last year.
Instead, Rivian's priority is getting its Illinois plant ready to produce the R2 SUV, the next model in its lineup. The company will have the capacity to produce 155,000 R2s annually.
The R2 is vital for Rivian to achieve profitability. The company expects that its cost of revenues per vehicle for the R2 will be half of its costs to manufacture the R1. Rivian will begin production of the R2 in the current quarter, in anticipation of the SUV's planned launch in the first half of 2026.
As updates on the R2 roll in, management believes the lower cost structure will result in what it calls "a quick path to positive gross profit." Investors optimistic about Rivian's R2 marketing should consider adding its stock to their portfolios.
The stock could certainly decline, though, should the R2 not live up to expectations. Investors should therefore consider Rivian a high-risk stock.
