Rivian Automotive announced its third-quarter performance, surpassing Wall Street’s earnings expectations as it increases production of its new R2 entry-level SUV. For the period ending on September 30, Rivian reported an adjusted loss per share of 48 cents, better than the anticipated loss of 62 cents. Revenue amounted to $2.16 billion, exceeding the forecast of $1.99 billion. Following these results, Rivian’s stock experienced a 7% increase in after-hours trading, although it had previously reached a 52-week low of $11.38 earlier in the day.
The company has also updated its 2026 projections to reflect anticipated improvements in vehicle deliveries, pre-tax adjusted earnings, and capital expenditures. Rivian now expects a pre-tax adjusted loss of between $1.75 and $1.85 billion, reducing the prior guidance by $100 million at the midpoint. It projects vehicle deliveries between 67,000 and 70,000 units, an increase from the previous estimate of at least 65,000.
Rivian’s recent successes have been attributed in part to sales of regulatory credits and a tariff refund. The R2 model, which began deliveries in June, has become Rivian’s top-selling vehicle, contributing significantly to the company’s overall performance. While Rivian remains unprofitable, it reduced its net loss to $913 million, down from $1.17 billion in the third quarter of 2025.
Additionally, Rivian reported a gross profit of $176 million, a significant increase from $24 million a year earlier. The company’s software and services segment generated $605 million in revenue, boasting a 42% gross profit margin. Rivian anticipates that the R2 will achieve a positive gross margin by year’s end, with plans to scale production beyond 160,000 units to reach overall profitability.
Why this story matters:
- Rivian’s performance could influence investor confidence in the electric vehicle market.
Key takeaway:
- Rivian is showing signs of narrowing losses and improving production efficiency with its R2 model.
Opposing viewpoint:
- Some analysts remain skeptical about Rivian’s ability to achieve long-term profitability given its ongoing financial losses.
