Why Rivian Stock Fell 12% in the First Half of 2026

Rivian stock dropped 11.9% in the first half of 2026, weighed down by a collapsing EV market and the company's retreat from profitability targets. U.S. EV sales fell 28% during the period, pressuring the entire sector as Rivian struggled to narrow losses.

The company reported a $427 million adjusted EBITDA loss in Q1 and eliminated its 2027 EBITDA profitability goal, removing a key milestone investors had been tracking. Analyst downgrades followed, despite Rivian raising delivery guidance and launching its R2 SUV during the half.

The sell-off accelerated in July when Rivian announced a $1.2 billion capital raise, triggering an 18% single-session plunge. The dilutive move underscored the cash burn pressuring the balance sheet as the company scales production without a clear path to break-even.

The disconnect between operational progress—higher delivery targets, a new model launch—and stock performance highlights investor focus on profitability timelines rather than volume growth in a weakening demand environment.