Rivian Automotive (RIVN.US) reported third-quarter results that surpassed Wall Street expectations, marking its second quarterly gross profit this year, driven by its joint venture with Volkswagen (VWAGY.US) and contributions from software and services.
The company posted Q3 revenue of $1.56 billion, up 78% from $874 million a year earlier, exceeding analysts' average estimate of $1.5 billion. Net loss attributable to common shareholders widened slightly to $1.17 billion (96 cents per share) from $1.1 billion ($1.08 per share) in the prior-year period. Excluding one-time items such as R&D, the adjusted loss per share was 65 cents, better than the expected 72 cents.
Gross profit, a key metric for investors, reached $24 million, significantly outperforming the anticipated loss of $38.6 million. Both its automotive business and software/services segments exceeded expectations.
"Despite short-term uncertainties from trade, tariffs, and regulatory policies, we remain focused on long-term growth and value creation," said RJ Scaringe, Rivian’s CEO and founder, in a shareholder letter.
The automotive segment reported an operating loss of $130 million, an improvement of $249 million year-over-year, offset by $154 million in revenue from the Volkswagen joint venture and software/services.
Strong vehicle deliveries also contributed to Rivian’s Q3 performance. U.S. consumers rushed to purchase vehicles before the federal tax credit expired, leading to 13,201 deliveries—a 32% increase from last year. However, anticipating weaker demand post-credit expiration, Rivian slightly lowered its full-year production guidance to around 42,500 units.
"October may be an unusual month as demand was pulled forward by the tax credit, but we expect conditions to normalize over time," Scaringe noted.
Market research firm Edmunds observed that U.S. EV sales slowed in October after a record September, with average prices hitting a historic high of $65,021, suggesting buyers prioritized EV adoption over discounts.
Rivian maintained its revised 2025 outlook, projecting an adjusted EBITDA loss of $2–2.25 billion and capital expenditures of $1.8–1.9 billion. Gross profit is expected to remain flat, slightly below initial targets.
The company confirmed plans to begin production of its new R2 midsize vehicle in the first half of next year at its Illinois plant. As of Q3, Rivian held $7.7 billion in liquidity, including $7.1 billion in cash and short-term investments—providing a "solid foundation" for R2’s launch.
Scaringe dismissed concerns about potential delays from Chinese rare-earth materials or Nexperia chips, stating, "Our supply chain design and preparations mitigate such risks." China recently considered partial exemptions for Nexperia chip exports after trade disruptions.
The broader EV industry faces challenges, including tariff-driven cost increases, slowing sales forecasts, regulatory shifts, and the end of federal incentives. Rivian reduced its tariff impact estimate from "thousands per vehicle" to hundreds due to extended U.S. manufacturing credits.
"More favorable tariff costs are meaningful for us," Scaringe told investors.
Separately, Rivian announced its industrial robotics startup, Mind Robotics, secured $110 million in external funding this month.
Shares of Rivian closed down 5.23% at $12.50 on Tuesday but rose over 3% after hours. Year-to-date, the stock has declined roughly 6%.
