TLDR
- Rivian stock jumped 23.36% on Wednesday, closing at $15.42 per share after beating Q3 earnings estimates.
- Revenue surged 78% year-over-year to $1.558 billion, driven by higher automotive sales and buyers rushing to purchase before EV tax credit expiration.
- The company posted a gross profit of $24 million, bouncing back from last quarter’s loss.
- Rivian maintains its full-year delivery target of 41,500 to 43,500 vehicles and expects an adjusted EBITDA loss of $2 billion to $2.25 billion.
- The upcoming R2 midsize SUV remains on track for first-half 2026 production, with manufacturing validation builds set to begin by year-end.
Rivian stock climbed 23.36% on Wednesday. The electric vehicle maker closed at $15.42 per share.
The rally came after the company reported third-quarter earnings that exceeded Wall Street expectations. Revenue hit $1.558 billion, up from $874 million in the same period last year.
Rivian Automotive, Inc., RIVN
That’s a 78% increase year-over-year. Analysts had expected $1.49 billion in revenue.
The revenue boost came from two main sources. Automotive revenue grew 47% to $1.14 billion from $776 million. Software and service revenue jumped 324% to $416 million from $98 million.
The company said buyers rushed to make purchases before EV tax credits expire. This push helped drive higher deliveries during the quarter.
“As we’ve said previously, we expect the third quarter will be our highest delivery quarter for the year,” Rivian stated. The accelerated buying pattern also came with higher selling prices.
The software revenue increase was tied to vehicle electrical architecture development. Remarketing, vehicle repair, and maintenance services also contributed.
Rivian reported a loss of $0.65 per share. This beat the estimated loss of $0.71 per share.
Return to Profitability
The company posted gross profit of $24 million. This snapped last quarter’s loss after two consecutive profitable quarters.
The adjusted EBITDA loss came in at $602 million. Analysts had expected a loss of $570.7 million.
Despite the revenue gains, net loss grew to $1.173 billion from $1.1 billion year-over-year. That’s a 6.6% increase.
For the full year, Rivian is sticking with its guidance. The company expects an adjusted EBITDA loss between $2 billion and $2.25 billion.
Capital expenditures are projected at $1.8 billion to $1.9 billion. The delivery target remains between 41,500 and 43,500 vehicles for 2025.
Earlier this month, the company reported production of 10,720 vehicles and deliveries of 13,201 vehicles in Q3. This matched expectations for what was anticipated to be a strong quarter.
R2 Development on Track
CEO RJ Scaringe highlighted progress on strategic priorities. “We continue to believe that Rivian’s vertically integrated technologies and direct-to-customer ownership experience position our company to build a category-defining brand,” he said.
The upcoming R2 midsize crossover remains on schedule for first-half 2026 production. All shops have started equipment installation.
The R2 body shop is fully installed and powered on for robot commissioning. Manufacturing validation builds are expected to begin at year-end.
Paint shop upgrades increased capacity to 215,000 units annually. This sets the stage for the R2 ramp-up.
Wedbush analyst Dan Ives maintained an Outperform rating with a $16 price target. “We remain positive in the long-term RIVN vision,” he wrote.
The stock had traded down 1.10% in pre-market trading on Thursday to $15.25. Wednesday’s close represented a full-year delivery of 10,720 vehicles in the third quarter, with 13,201 vehicles delivered to customers.
The post Rivian (RIVN) Stock Rallies 23% as Revenue Nearly Doubles Year-Over-Year appeared first on Blockonomi.
Source: https://blockonomi.com/rivian-rivn-stock-rallies-23-as-revenue-nearly-doubles-year-over-year/