Who Is Paying For Rivian’s Cash Burn?
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Rivian Automotive (RIVN) builds electric vehicles, from its new R2 SUV to electric delivery vans for Amazon. During the fiscal third quarter ended September 30, 2026, Rivian spent $1.12 billion more on running the business and capital spending than it brought in. The automaker has now burned cash in all four of the latest quarters. So take a guess: at that pace, how long would Rivian’s cash last?
How Fast Is Rivian Burning Cash?
Rivian burned cash equal to 52.2% of its sales in the third quarter, compared with 27.0% in the same quarter a year earlier. Over the latest four quarters, the automaker burned more than eight times as much cash as it did in the four prior quarters. That earlier span included the quarter ended December 2024, when Rivian brought in more cash than it spent.
| Fiscal quarter | Sales | Cash from running the business | Cash left after capital spending |
|---|---|---|---|
| Q2 FY2025 (ended 2025-06-30) | $1.30 billion | $0.0640 billion | -$0.398 billion |
| Q3 FY2025 (ended 2025-09-30) | $1.56 billion | $0.0260 billion | -$0.421 billion |
| Q4 FY2025 (ended 2025-12-31) | $1.29 billion | -$0.681 billion | -$1.14 billion |
| Q1 FY2026 (ended 2026-03-31) | $1.38 billion | -$0.703 billion | -$1.07 billion |
| Q2 FY2026 (ended 2026-06-30) | $1.66 billion | -$0.487 billion | -$0.849 billion |
| Q3 FY2026 (ended 2026-09-30) | $2.15 billion | -$0.758 billion | -$1.12 billion |
Each row is one fiscal quarter. A negative figure is cash going out. The last column is free cash flow.
The cash burn is larger than it was a year ago. In Rivian’s favor, sales have grown faster than the burn in fiscal 2026, so the burn has fallen to about half of sales, down from 89.0% in the quarter ended December 2025.
How Long Would Rivian’s Cash Last?
Rivian held $5.5 billion in cash and short-term investments on September 30, 2026. If the company maintained its average burn pace of the last four quarters and raised nothing, that cash would last about five quarters. On October 7, Rivian announced the funding of a $1 billion term loan with Volkswagen Group, a sum not included in that count.
At the quarter end, Rivian’s debt stood at $5.43 billion, a little less than its cash. So at this pace, Rivian has cash for well under two years, and it owes almost as much as it holds.
Who Has Paid For The Burn So Far?
Rivian’s existing shareholders have carried part of the cost. The diluted share count rose 42.6% in the two years to September 30, 2026, so each existing share now holds a smaller piece of the company. Debt fell from $6.26 billion to $5.43 billion over those two years, so the burn was not paid for with more debt.
Rivian has taken in money through its joint venture with Volkswagen Group. On the October 29 call, management said the company has received $5.3 billion to date out of the $5.8 billion it expects.
What Has To Change At Rivian
On that call, management said it expects the R2 to help its automotive business run at a gross profit by the end of 2026, though not across the whole fourth quarter. But spending is set to rise. Management expects a meaningful step-up in capital spending in 2027 as construction ramps at its Georgia manufacturing facility.
Third-quarter sales rose 38.3% from a year earlier. For the burn to shrink while spending rises, Rivian has to earn more on what it sells. At Rivian’s next report, expected in February 2027, the figure to watch is the cash it burns each quarter: $1.12 billion in the quarter ended September 2026.
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