Rivian shares surged Friday after its latest results boosted optimism that the long-struggling electric-vehicle maker is headed toward better times.
The Irvine-based manufacturer announced Thursday that it posted $2.15 billion in third-quarter revenue, up 38% from last year. Vehicle deliveries were up 46%, driven by the new R2, which launched in June.
The market applauded its results. Rivian shares, which had tumbled more than 40% this year, rose more than 6% Friday to close at $12.16.
Rivian hasn’t been profitable since its founding in 2009. It went public in 2021 and lost $3.6 billion last year.
Chief Executive RJ Scaringe said Rivian is targeting positive automotive gross profits by the end of 2026. It reported an automotive gross loss of $80 million for the third quarter this year, compared with a loss of $130 million in the third quarter last year.
The company said the lower loss was driven primarily by higher delivery volumes and an improved per-unit margin. The R2 was the company’s best-selling vehicle by volume in the quarter.
Rivian produced 19,751 vehicles at its facility in Normal, Ill., and delivered 19,248 vehicles.
The company also raised the lower end of its full-year delivery guidance range to 67,000 units from 65,000.
“Raising the delivery guidance shows that R2 production is ramping up, and that’s a good sign in the near term for Rivian,” said Morningstar analyst Seth Goldstein. “I’m optimistic that Rivian will continue to drive profitability through increased R2 volumes.”
Rivian currently sells only the performance version of the R2, priced at $57,990, still expensive for many Americans but a step down from the company’s typical prices of around $77,000.
The company said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.
The release of the lower-priced R2 will likely be another boost for the company, Goldstein said.
“This should open them up to a wider number of consumers,” he said.
Rivian is also banking on its self-driving technology. Consumers can already buy the R2 with a universal hands-free driver assistance package.
“Regarding our technology roadmap, our autonomy platform is progressing rapidly,” Scaringe said in a statement. “We are laying the foundations for a future that we believe will be fully electric, autonomous and AI-defined.”
While the race to bring self-driving robotaxis to the mass market is in full swing, there’s also great demand for similar technology in consumer vehicles.
Multiple vehicles from several automakers offer some degree of driver assistance, with Tesla firmly ahead of the pack with its autonomous software capabilities.
Rivian is beginning to catch up, said Chris Pierce, an analyst at Needham & Company.
“They’re closing the gap with Tesla and widening the gap with legacy automakers like GM and Ford,” Pierce said. “If they’re going to have a car that has a road map to autonomy, and it retails for less than the average new car in the United States, that’s a pretty positive formula.”
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