Shares of Rivian Automotive (RIVN) rose in after-hours trading after the firm posted better-than-expected Q3 earnings results. Indeed, the EV maker reported an adjusted loss of $0.65 per share, which beat analysts’ forecast for a $0.72 loss. At the same time, revenue surged by 78% year-over-year to $1.56 billion, exceeding expectations by $60 million.
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In addition, Rivian’s second-quarter gross profit of $24 million was far better than the expected $38.6 million loss. This was driven by strong performance in its automotive, software, and services segments, as well as a major boost from the firm’s joint venture with Volkswagen (VWAGY).
In addition, Rivian ended Q3 with $7.7 billion in total liquidity, including $7.1 billion in cash and equivalents, which CEO RJ Scaringe said leaves the firm well-prepared for the R2 launch and long-term growth, despite near-term uncertainty.
Outlook
Looking ahead, Rivian maintained its previously reduced full-year 2025 guidance. The company still expects an adjusted earnings loss of $2 billion to $2.25 billion, as well as capital expenditures of between $1.8 billion and $1.9 billion. Moreover, vehicle deliveries are projected to range from 41,500 to 43,500 units, while gross profit is forecasted to remain around breakeven.
Rivian also reaffirmed that the production of its new R2 midsize vehicle is on track for the first half of 2026 at its Illinois facility, with no anticipated delays due to issues related to China-based chip supplier Nexperia or concerns over rare earth minerals.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on seven Buys, 10 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $13.69 per share implies 9.5% upside potential.
