Rivian (RIVN) Stock Soars 36% on Gross Profit Beat and Analyst Upgrade

TLDR

• Rivian’s Q3 2025 results beat Wall Street estimates with a $0.65 adjusted loss per share versus the expected $0.72 loss
• The company posted $24 million in gross profit, crushing analyst expectations of a $38.6 million loss
• Automotive gross profit improved by $249 million year-over-year, reaching a loss of just $130 million
• Software and services generated $154 million in gross profit thanks to the Volkswagen joint venture
• Stifel raised its price target to $17 from $16 while maintaining a Buy rating

Rivian stock jumped 36% over the past month after the EV maker delivered Q3 results that showed real progress toward profitability. The company beat estimates on both revenue and losses, but it was the gross profit number that really caught investors’ attention.

Rivian Automotive, Inc., RIVN

The electric vehicle maker posted an adjusted loss of $0.65 per share in Q3. That beat Wall Street’s expected loss of $0.72 per share. Revenue came in at $1.56 billion, topping the $1.5 billion estimate.

But here’s what really mattered. Rivian reported $24 million in gross profit for the quarter. Analysts had expected a loss of $38.6 million instead.

This wasn’t a fluke. The company has shown steady improvement in gross profit almost every quarter since early 2022. The only exception was Q2 2025 when production issues temporarily set things back.

The improvement came from two sources. First, Rivian pulled costs out of its R1 platform. This helped automotive gross profit improve by $249 million compared to the prior year, even though it still posted a $130 million loss.

Second, software and services brought in $154 million in gross profit. That revenue stream got a boost from Rivian’s joint venture with Volkswagen.

Cost Cuts Drive Progress

The company reduced its cost of goods sold per unit by about $2,200 from the previous quarter. That sequential improvement shows the cost-cutting measures are working.

Rivian’s automotive gross profit loss per vehicle dropped to $985 in Q3. That’s a huge improvement from the $3,142 loss per vehicle in Q2. Stifel analysts had only expected a loss of $2,039 per vehicle.

The company told investors it expects to cut costs roughly in half when it moves from R1 to R2 models. The R2 crossover is scheduled to launch in the first half of 2026.

Rivian also addressed tariff concerns. Management said new policies would only impact costs by a few hundred dollars per unit. Previous estimates had put the tariff impact at several thousand dollars per vehicle.

R2 Launch on the Horizon

The R2 crossover represents a major opportunity for Rivian. The vehicle is expected to be priced around $45,000. That puts it below the $50,000 average new vehicle price in the U.S. market.

Initial R2 production will come from Rivian’s original plant. The company is expanding that facility to add capacity. In September, Rivian held a groundbreaking ceremony for a new Georgia plant. That facility will eventually add 400,000 units of annual production capacity across two phases, though construction won’t begin until next year.

Rivian ended Q3 with $7.7 billion in total liquidity. That includes $7.1 billion in cash and cash equivalents. The company expects another $2.5 billion from its Volkswagen joint venture once certain technology milestones are met.

Stifel raised its price target on Rivian to $17 from $16 following the Q3 results. The firm maintained its Buy rating. Other analysts have also adjusted their targets recently, with Tigress Financial Partners setting a $25 price target and DA Davidson raising its target to $15 from $13.

Rivian plans to host an Autonomy & AI Day on December 11, 2025. The company will share more details about its long-term strategy for autonomous driving technology. The event could provide another catalyst for the stock if Rivian demonstrates meaningful progress in this area.

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