Rivian stock jumps 6% after third-quarter sales beat expectations

Rivian shares climbed more than 6% on Friday, closing at $12.16 after investors reacted to the electric vehicle maker's latest earnings report. The stock had fallen by more than 40% earlier this year before this recent surge.

The company announced Thursday that it generated $2.15 billion in revenue during the third quarter, a 38% increase from the same period last year. Vehicle deliveries rose by 46% over that same timeframe, driven largely by the introduction of the new R2 model in June.

Rivian produced 19,751 vehicles at its plant in Normal, Illinois, and delivered 19,248 units to customers. The R2 became the company's best-selling vehicle by volume for the quarter. Although the firm is not yet profitable, its automotive gross loss narrowed to $80 million in the third quarter, down from a $130 million loss in the third quarter of last year.

CEO RJ Scaringe stated that the company aims to achieve positive automotive gross profits by the end of 2026. The reduction in losses was attributed primarily to higher delivery volumes and improved per-unit margins. Rivian also raised the lower end of its full-year delivery guidance to 67,000 units, up from the previous estimate of 65,000.

The R2 is currently sold only in a performance version priced at $57,990. This price point is lower than the company's typical vehicles, which cost around $77,000. A more affordable R2 Premium model is scheduled to arrive in late 2026 at approximately $54,000, followed by an R2 Standard version in 2027 priced at $44,990.

Morningstar analyst Seth Goldstein noted that the increased delivery guidance indicates R2 production is ramping up effectively. He expressed optimism that higher R2 volumes will help the company drive toward profitability. "This should open them up to a wider number of consumers," Goldstein said.

Rivian is also expanding its charging infrastructure, adding more than 150 public EV chargers to Caruso properties, including The Grove and The Commons at Calabasas. The company continues to develop its self-driving technology, with the R2 available for purchase with a universal hands-free driver assistance package.

Needham & Company analyst Chris Pierce observed that Rivian is closing the gap with Tesla in autonomous software capabilities while widening the distance from legacy automakers like GM and Ford. "If they're going to have a car that has a road map to autonomy, and it retails for less than the average new car in the United States, that's a pretty positive formula," Pierce said.