Key Stats for Rivian Stock
- 1-Day Price Change for Rivian stock: 23%
- $RIVN Share Price as of Nov. 5: $15.42
- 52-Week High: $17.15
- $RIVN Stock Price Target: $14.35
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What Happened?
Rivian (RIVN) stock soared over 23% yesterday after the electric vehicle maker beat Wall Street expectations for the third quarter and posted its second quarterly gross profit of the year.
The company reported an adjusted loss of $0.65 per share, which was better than the $0.71 loss that analysts had expected.
Revenue came in at $1.56 billion, surpassing the $1.51 billion consensus estimate and representing a 78% increase from the same period a year earlier.
The big surprise was the gross profit of $24 million, which significantly exceeded FactSet’s estimates of a $38.6 million loss.
This marked a significant turnaround from recent quarters, despite a $130 million loss in automotive operations. The positive result was driven by $154 million in contributions from Rivian’s joint venture with Volkswagen, as well as its software and services business.
CEO RJ Scaringe reaffirmed the company’s plans to begin production of the R2 midsize SUV in the first half of 2026 at its Illinois plant.
The R2 will start at $45,000 and targets the most popular vehicle segment in America—five-seat SUVs. Scaringe said he’s been driving an R2 for a while and called it “incredible.”
Rivian has lowered its expected tariff impact on new vehicles from “a couple thousand dollars per unit” to just hundreds of dollars following recent changes by the Trump administration. “It’s a pretty significant shift for us,” Scaringe told investors on the earnings call.
The company ended the quarter with $7.1 billion in cash and reaffirmed its guidance for 41,500 to 43,500 vehicle deliveries this year, along with adjusted EBITDA losses of between $2 billion and $2.25 billion.
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What the Market Is Telling Us About Rivian Stock
The positive move in Rivian stock suggests investors are gaining confidence in the company’s path to profitability, particularly with the R2 launch approaching.
The gross profit beat indicates that the Volkswagen partnership is already generating meaningful revenue, even before any joint vehicles hit the road.
Scaringe emphasized that Rivian doesn’t expect supply chain issues—including concerns about rare earth minerals from China or chips from Chinese-owned supplier Nexperia—to delay R2 production.
“This isn’t something we’re seeing as a potential for delay in R2 just because of how we built and designed the supply chain,” he told CNBC.
Rivian made substantial progress on unit economics, posting one of its best quarters ever in automotive cost of goods sold per unit delivered at around $96,300.
That improvement came despite several weeks of downtime to prepare the Normal, Illinois, plant for R2 production. CFO Claire McDonough stated that the company anticipates R2 to achieve positive unit economics by the end of 2026.
Rivian stock has struggled this year, down almost 7% compared to the broader market’s gains, as investors grapple with slower EV adoption and the elimination of federal tax credits for electric vehicles.
But the company’s focus on the mass-market R2, priced near the $50,000 average for new vehicles in America, positions it to compete beyond just the EV market.
With Tesla dominating the $45,000-$50,000 EV segment, holding about 50% market share between the Model 3 and Model Y, Scaringe argued that the market is “underserved” and needs more choice.
The R2 aims to deliver Rivian’s adventure-focused brand promise in a more affordable, practical package.
One concern is the company’s cautious stance on regulatory credits. Rivian removed regulatory credit sales from its forecast due to policy uncertainty, eliminating a potential revenue source that has helped other EV makers.
The EV maker also faces near-term demand headwinds as buyers adjust to the loss of federal tax credits, though Scaringe remains confident in R2’s long-term appeal.
With over $7 billion in liquidity and the Volkswagen partnership providing additional capital of up to $2.5 billion, Rivian appears well-funded for the R2 ramp.
Moreover, Rivian is working with the Department of Energy on a potential $6.6 billion loan for its Georgia facility, which will add 400,000 units of capacity for R2, R3, and future variants starting in late 2028.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
