Rivian Tops Q3 Estimates, Holds Firm on 2025 Outlook
A joint venture with Volkswagen and growth in its software and services division helped offset a $130 million automotive loss.
Rivian Automotive exceeded Wall Street expectations for the third quarter, reporting stronger-than-expected revenue and its second consecutive quarterly gross profit.
The EV maker’s $1.56 billion in revenue surpassed analyst estimates, while adjusted losses narrowed to $0.65 per share, beating expectations of $0.72. A joint venture with Volkswagen and growth in its software and services division helped offset a $130 million automotive loss.
Profit gains driven by VW joint venture and improved margins
Rivian posted a $24 million gross profit in Q3, a sharp turnaround from the $38.6 million loss analysts had predicted. This marked a $249 million year-over-year improvement in its automotive operations. The company credited much of the gain to contributions from Volkswagen and steady growth in software-related revenue streams, according to CNBC.
Rivian shares climbed more than 3% in after-hours trading following the report, though the stock remains down roughly 6% for the year. CEO RJ Scaringe emphasized long-term stability amid “near-term uncertainty from trade, tariffs, and regulatory policy,” noting that Rivian’s supply chain and liquidity position of $7.7 billion leave it well-prepared for future launches.
Focus remains on R2 launch and managing tariff headwinds
The company reaffirmed its 2025 guidance, including projected vehicle deliveries between 41,500 and 43,500 units and an adjusted loss of $2 billion to $2.25 billion. Rivian also maintained plans to begin production of its new R2 midsize SUV in the first half of next year at its Illinois facility.
Despite industrywide concerns about rare earth supply and chip restrictions, Scaringe confirmed that these issues are unlikely to delay R2 production. He highlighted that Rivian’s diversified supply chain mitigates potential disruptions, even as China tightens export rules on Nexperia chips.
Rivian’s Q3 revenue rose 78% year over year, underscoring growing demand despite broader EV market headwinds. The company also benefited from recent U.S. policy adjustments that reduced expected tariff costs on new vehicles from thousands to just hundreds of dollars per unit, a shift Scaringe called “pretty significant.”
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