Rivian electric SUV parked in front of a brick showroom on a sunny day, San Francisco, California, August 19, 2025.
Smith/gado collection | Photo archives | Getty Images
DETROIT – Rivian Automobile exceeded Wall Street’s expectations for the third quarter, as the company reported its second quarterly gross profit this year thanks to a joint venture with Volkswagen and its software and services business.
Here’s what Wall Street expected, based on average analyst estimates compiled by LSEG:
- Loss per share: 65 cents adjusted versus. a loss of 72 cents expected
- Income: $1.56 billion versus $1.5 billion expected
Rivian shares rose more than 3% in extended trading Tuesday, after closing down 5.2% at $12.50 per share. The stock is down about 6% this year.
Regarding its gross profit, closely watched by investors, the company reported $24 million in the third quarter, beating FactSet consensus estimates of a loss of $38.6 million. The company’s automotive and software and services sectors performed better than expected.
“While we face near-term uncertainty in trade, tariffs and regulatory policy, we remain focused on long-term growth and value creation,” Rivian CEO and founder RJ Scaringe said in the company’s shareholder letter Tuesday.
Rivian’s gross profit included a $130 million loss in its automotive business – an improvement of $249 million from the same period a year earlier – which was offset by $154 million from its VW joint venture and its software and services business.
Investors view gross margin as a key indicator of a company’s profitability before operating expenses, interest and taxes.
Rivian’s actions in 2025
Rivian maintained its previously lowered guidance for 2025, which includes an adjusted profit loss of between $2 billion and $2.25 billion, capital expenditures of $1.8 billion to $1.9 billion and vehicle deliveries of 41,500 to 43,500 units.
The company also reaffirmed the production schedule for its new R2 midsize vehicle for the first half of next year at the company’s sole plant in Illinois.
Scaringe said Tuesday the company does not expect concerns about rare earth minerals from China or chips from Chinese auto supplier Nexperia to delay production of the R2.
“It’s not something that we see as a potential for delay in R2 just because of the way we’ve built and designed the supply chain, and the preparation that’s gone into getting ready for launch,” he told CNBC’s Phil LeBeau in an interview. “Right now, Nexperia, we just need to fix this.”
China said on Saturday it would consider some exemptions for exports of Nexperia chips, which it halted amid trade talks with the United States and after the Dutch government bought the company from the Netherlands.
Rivian’s third-quarter revenue increased 78% from $874 million a year earlier. The company’s net loss widened slightly, from $1.1 billion in the third quarter of last year to $1.17 billion in the most recent quarter.
Rivian ended the third quarter with $7.7 billion in total liquidity, including nearly $7.1 billion in cash, cash equivalents and short-term investments that Scaringe said are “really well positioned” for the R2 launch.
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