Rivian (NASDAQ:RIVN) appears to be getting the thumbs up from investors following its Q3 report, with the shares pushing higher in Wednesday’s trading.
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In the quarter, the company generated $1.55 billion in revenue, surpassing the consensus estimate of $1.49 billion and marking a 78% year-over-year increase, driven by a pull-forward in deliveries due to the loss of federal EV tax credits at the end of the quarter. At the other end of the equation, the EV maker reported an adj. loss per share of $0.65, better than the ($0.71) expected.
Rivian also notched a $24 million gross profit, rebounding after a loss in the previous quarter, following two quarters of gross profit earlier in the year.
For the full year, Rivian maintained its earlier guide, projecting deliveries of 41,500 to 43,500 vehicles, roughly in line with the consensus estimate of 42,544. The company expects an adj. EBITDA loss between $2 billion and $2.25 billion, with the midpoint of $2.125 billion slightly outpacing Street expectations. Capital expenditures are anticipated to range from $1.80 billion to $1.90 billion vs. the $1.83 billion forecast.
Cannacord analyst and Rivian fan George Gianarikas thinks the results were “mostly in line with expectations,” noting a “positive surprise” on the gross margin front. But really, the big story here is all about the R2 – Rivian’s upcoming midsize crossover, still slated for release in the first half of 2026.
The importance of the launch should not be underestimated, with Gianarikas believing it could be a game-changer for Rivian and position it to become the “next American auto icon.”
Gianarikas thinks the launch is “going to be interesting — a kind of case study in the making.”
“Rivian is about to navigate a complex macro environment as it brings its firm-redefining R2 vehicle to market; as it launches into the deep,” the 5-star analyst went on to say. “Would you rather (1) debut a new product in a market buzzing with excitement for EVs — crowded with competitors but driven by strong demand? Or (2) launch an exceptionally compelling new model once enthusiasm has faded, yet many rivals have disappeared?”
Rivian is set to introduce the R2 under option 2, and Gianarikas expects it will do well, in fact, “exceedingly well,” and that should help the stock finally “find its mojo.”
Bottom line, Gianarikas reiterated a Buy rating on RIVN shares, backed by a Street-high $21 price target, implying the stock will gain 46% in the months ahead. (To watch Gianarikas’ track record, click here)
The Street’s average target is a less ambitious $13.6, which sits 5.5% below the current share price. Most analysts are staying on the sidelines for now; based on a mix of 10 Holds, 7 Buys, and 5 Sells, the stock claims a Hold consensus rating. (See RIVN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.