Detroit – Rivian Automotive Thanks to its joint venture with Volkswagen and its software and services business, the company reported its second quarterly gross profit this year, beating Wall Street expectations for the third quarter.
Here’s what Wall Street expected, based on average analyst forecasts compiled by LSEG.
Loss per share: 65 cents adjusted, 72 cents expected Lost earnings: $1.56 billion, $1.5 billion expected
Rivian stock rose more than 3% in extended trading Tuesday after closing 5.2% lower at $12.50 per share. The stock price has fallen about 6% since the beginning of the year.
In terms of gross profit, which investors are keeping an eye on, the company reported $24 million in the third quarter, beating the FactSet consensus estimate for a loss of $38.6 million. The company’s automotive, software and services results all exceeded expectations.
“While we face near-term uncertainty due to trade, tariffs and regulatory policy, we remain focused on long-term growth and value creation,” RJ Scaringe, Rivian’s CEO and founder, said in a letter to the company’s shareholders on Tuesday.
Rivian stock price in 2025
Rivian’s gross profit included a $130 million loss in its automotive business, an improvement of $249 million from the year-ago period, offset by $154 million from its VW joint venture and software and services.
Investors look at gross profit as a key indicator of a company’s profitability, excluding operating expenses, interest, and taxes.
Rivian maintained its previously lowered 2025 outlook, which included an adjusted earnings loss of $2 billion to $2.25 billion, capital expenditures of $1.8 billion to $1.9 billion, and deliveries of 41,500 to 43,500 vehicles. The company also reaffirmed that gross profit is near the break-even point, below the modest profit target set at the beginning of the year.
The company also reaffirmed that production of its new mid-size car, the R2, at its only plant in Illinois will be in the first half of next year.
Rivian ended the third quarter with $7.7 billion in liquidity. That includes nearly $7.1 billion in cash, cash equivalents and short-term investments, and Scaringe said the company is “very well positioned” for the launch of R2.
Scaringe said Tuesday that he does not expect concerns about rare earth minerals from China or chips from Chinese-owned auto supplier Nexperia to slow R2 production.
Rivian CEO Robert “RJ” Scaringe speaks at the launch of the Rivian R2 electric vehicle at the Rivian Southcoast Theater on March 7, 2024 in Laguna Beach, California.
Patrick T. Fallon | AFP | Getty Images
“I don’t think R2 could be delayed just because of the preparations that we’ve focused on building and designing the supply chain and getting ready for launch,” he said in an interview with CNBC’s Phil LeBeau. “Nexperia, in more immediate terms, we just need to resolve this issue.”
China said on Saturday it would consider some exemptions for exports of Nexperia chips, which had been halted during trade negotiations with the United States and following the Dutch government’s takeover of the Dutch company.
Rivian’s third-quarter revenue increased 78% compared to $874 million in the year-ago period. The company’s net loss attributable to common stockholders widened slightly from $1.1 billion, or a loss of $1.08 per share, in the third quarter of last year to $1.17 billion, or a loss of 96 cents, in the most recent quarter. Excluding one-time items such as research and development, the company lost 65 cents per share.
In addition to industry-wide issues such as increased costs due to tariffs and slowing EV sales forecasts, EV makers such as Rivian are facing company-specific issues such as new product challenges and regulatory changes such as the end of federal consumer incentives that have a negative impact on sales and profits.
Rivian on Tuesday lowered the expected impact of tariffs on new car manufacturing from “several thousand dollars per vehicle” to hundreds of dollars per vehicle, following changes the Trump administration made last month to extend offsets on certain parts of U.S.-made vehicles.
“This is a pretty significant change for us,” Scaringe told investors at the company’s quarterly earnings call about the more favorable tariff costs.
