Rivian Automotive Inc. achieved a key milestone in its third-quarter earnings, reporting its first-ever positive gross profit, a development that investors and analysts view as a major step forward for the electric vehicle (EV) maker.
While the company’s bottom-line results missed Wall Street expectations, stronger-than-expected sales and improving margins point to progress in its path toward profitability.
Shares of Rivian climbed 19.24% to $14.90 on Wednesday following the announcement.
Positive gross profit signals progress
For the third quarter, Rivian posted a net loss of 96 cents per share on revenue of $1.6 billion, compared with Wall Street estimates for a loss of 88 cents per share and revenue of $1.5 billion, according to FactSet.
However, the key metric drawing investor attention was Rivian’s positive gross profit of $24 million, a significant improvement from the $64 million gross loss analysts had projected.
The company’s performance marks an important inflection point, showing that Rivian is beginning to generate profits on the vehicles it sells, a crucial benchmark for any emerging automaker.
Analysts largely viewed the results as encouraging.
Wedbush analyst Dan Ives, who rates Rivian shares “Buy” with a $16 price target, described the quarter as “solid” and praised the company’s operational discipline despite industry headwinds.
“We remain positive in the long-term Rivian vision… while navigating significant macro headwinds impacting the EV landscape,” Ives said in a research note.
Strong vehicle deliveries offset market uncertainty
Rivian sold 13,201 vehicles in the third quarter, representing a 32% increase from the 10,018 vehicles sold in the same period a year earlier.
The company’s growth was supported by record US EV sales in September, as consumers accelerated purchases ahead of the expiration of the $7,500 federal EV purchase tax credit.
Still, the outlook for the rest of 2025 appears challenging.
Rivian expects to deliver 41,500 to 43,400 vehicles for the full year, implying fourth-quarter sales of roughly 10,000 vehicles — a 30% decline year over year.
The broader US EV market has shown signs of cooling after a surge earlier in the year.
Ford Motor Co., for instance, saw its EV sales jump 85% year over year in September, only to drop 25% in October.
Rivian doesn’t report monthly sales data, but investors are bracing for a similar slowdown in the coming months.
Cost control and future models key to 2026 outlook
While Rivian maintained its 2025 financial guidance, analysts expect cost management to be a primary focus as sales volumes ease.
Wall Street currently projects gross income of $47 million for the fourth quarter on expected revenue of $1.2 billion.
Maintaining profitability amid lower volumes will be a challenge, particularly as pricing pressures and production costs remain high.
Looking further ahead, analysts forecast Rivian will deliver about 73,000 vehicles in 2026, driven by the introduction of its lower-priced R2 series, which is expected to expand the company’s market reach.
Despite mixed sentiment around EV demand and US policy uncertainty, Rivian’s first positive gross profit marks a pivotal moment.
It suggests that the company’s manufacturing and cost efficiencies are starting to take hold, a sign that Rivian’s long-term vision may be on track even in a turbulent EV market.
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