Rivian’s sales figures and earnings results have been somewhat mixed, but there are aspects that left investors feeling hopeful about the company’s future.
It was clear to investors that 2025 wasn’t going to be a stellar year. Rivian (Riven +7.78%) wrapped up 2023 on a similar note as other developing electric vehicle (EV) companies, yet interest in its R1 models is, well, starting to dip. Plus, with no new vehicles expected until the R2 launch in 2026, uncertainty looms. The recent removal of the $7,500 federal tax credit for EVs added to the confusion; it led to a spike in demand during the third quarter, only to see it decline in the following quarter.
With this backdrop, Rivian shared its third-quarter results, which were, let’s say, a bit of a mixed bag. But what really got investors excited was the stock’s impressive 23% rise on Wednesday.
The numbers at a glance
So, Rivian’s third-quarter performance was strong, but the figures were not as rosy as the stock’s surge might imply. The company faced a loss of $0.96 per share while posting revenues of $1.6 billion. This was actually an improvement over Wall Street’s expectations for sales at $1.5 billion, although the loss per share exceeded the forecast of $0.88.
“Despite short-term challenges from trade issues and regulatory changes, our eyes are set on long-term growth and creating value,” said RJ Scaringe, CEO and founder of Rivian, in a letter to shareholders.
Sales of electric vehicles in September gave a healthy boost to Rivian’s quarterly results, with 13,201 vehicles sold. While this marks a commendable 32% increase year-on-year, it’s important to note that the long-term growth appears a bit stagnant, as illustrated in the graph below.
Looking forward
As Rivian moves into the fourth quarter, it’s likely to encounter a more tumultuous period. Take Ford Motor Company (F 0.42%) for instance. Ford’s EV sales soared 85% in September, but then fell 25% in October as the demand dropped following the tax credit repeal. Rivian might see similar trends among buyers for pure EVs.
Interestingly, one number that really contributed to the jump in Rivian’s stock was the gross profit. This figure is crucial as it indicates a company’s profitability before accounting for operating costs, interest, and taxes. According to Barron’s, Rivian managed to report a gross profit of $24 million—notably better than the expected $64 million loss.
However, digging deeper, that gross profit figure included a $130 million loss in its automotive division. Even though this was an improvement of $249 million year over year, it was still neutralized by $154 million generated from partnerships with companies like Volkswagen and various software and service sales.
As for Rivian’s financial standing going forward, they concluded the third quarter with a substantial $7.7 billion liquidity. Most of that—about $7.1 billion—comes from cash and short-term investments, which positions them well as they prepare for next year’s R2 launch. On top of that, management upheld its cost projections, anticipating adjusted losses between $2 billion and $2.25 billion, vehicle deliveries around 41,500 to 43,500, and gross margins close to break-even.
Another reassuring note from management was the lack of expected delays in production for the next-gen R2 due to issues with rare earth minerals or chips from China. Overall, it appears that for investors, the third quarter was solid—with reassuring gross margins. As long as the R2 launch goes smoothly and EV demand rebounds, there’s a lot to be optimistic about.
That said, Rivian still stands as a high-risk, volatile investment, making it wise for investors to keep these stakes to a minimum in their portfolios.
