TLDR
- Rivian posted $24 million Q3 gross profit versus analyst expectations of a $38.6 million loss
- The stock rallied 36% over the past month following the earnings beat
- Per-vehicle losses improved to $985 from $3,142 in the previous quarter
- Stifel upgraded its price target to $17 from $16 after the results
- The company holds $7.7 billion in total liquidity ahead of its R2 launch
Rivian shares climbed 36% in the past month after the company delivered Q3 results that showed real momentum toward profitability. The earnings report beat expectations across the board, but one metric stood out above the rest.
The electric vehicle maker reported $24 million in gross profit for Q3 2025. Wall Street had expected a loss of $38.6 million. That massive beat sent the stock higher and prompted analyst upgrades.
Rivian posted an adjusted loss of $0.65 per share, beating the consensus estimate of a $0.72 loss. Revenue reached $1.56 billion, topping the $1.5 billion forecast.
The gross profit improvement wasn’t random. Rivian has steadily reduced losses quarter after quarter since early 2022. The only setback came in Q2 2025 when production issues temporarily hurt margins.
Cost Cuts Pay Off
The company’s automotive gross profit showed a $249 million improvement compared to last year. While still posting a $130 million loss, that represents major progress.
Software and services delivered $154 million in gross profit. The Volkswagen joint venture helped boost this revenue stream.
Rivian cut its cost of goods sold by approximately $2,200 per unit from Q2 to Q3. The per-vehicle loss dropped to $985 from $3,142 in just one quarter. Stifel analysts had only expected losses of $2,039 per vehicle.
Management told investors to expect costs to drop by roughly half when production shifts from R1 to R2 models. The R2 crossover is set to launch in the first half of 2026.
Tariff concerns also eased. The company said new policies would only add a few hundred dollars per unit in costs. Previous estimates had ranged into the thousands of dollars.
R2 Launch Approaching
The R2 crossover will be priced around $45,000. That undercuts the $50,000 average new vehicle price in the U.S. market and opens up a much larger customer base.
Initial R2 production will start at Rivian’s existing plant. The company is expanding that facility now. A new Georgia plant will eventually add 400,000 units of annual capacity, but construction won’t begin until 2026.
Rivian ended Q3 with $7.7 billion in total liquidity, including $7.1 billion in cash. The Volkswagen joint venture should add another $2.5 billion once technology milestones are met.
Stifel raised its price target to $17 from $16 while keeping a Buy rating. Tigress Financial Partners has a $25 target, while DA Davidson increased its target to $15 from $13.
The company plans an Autonomy & AI Day on December 11, 2025, to discuss its self-driving technology strategy.
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