Al Root

Rivian generated a positive gross profit in the third quarter. Investors should be happy with that, even though the outlook for EV sales in America remains uncertain.

Tuesday evening, the EV maker reported a per-share loss of 96 cents from sales of $1.6 billion. Wall Street was looking for a loss of 88 cents from sales of $1.5 billion, according to FactSet.

The bottom-line miss shouldn't be that big a deal. Strong sales are encouraging.

And gross profit was more important than sales or earnings per share this quarter. It was positive $24 million in the quarter, much better than the $64 million loss that Wall Street analysts forecast.

Rivian stock soared 23% on Wednesday, closing at $15.42, while the S&P 500 and Dow Jones Industrial Average gained 0.4% and 0.5%, respectively.

Wedbush analyst Dan Ives called the results "solid" in a Wednesday note. He rates shares Buy and has a $16 price target for the stock.

"We remain positive in the long-term Rivian vision....while navigating significant macro headwinds impacting the EV landscape," Ives said.

September was a record for EV sales in the U.S. as people rushed to buy before the expiration of the $7,500 federal EV purchase tax credit. Rivian sold 13,201 vehicles in the third quarter, up 32% from the 10,018 sold in the third quarter of 2024.

Things will be tougher the rest of 2025. Ford Motor's EV sales jumped 85% year over year in September, to almost 12,000 vehicles, and then dropped 25% year over year in October, to less than 5,000 EVs.

Rivian doesn't report monthly sales volume but investors still expect a decline. The company expects to deliver 41,500 to 43,400 vehicles in 2025, implying fourth-quarter sales of about 10,000 vehicles, down 30% year over year.

Management's financial guidance didn't change for 2025. For 2026, Wall Street expects sales of about 73,000 vehicles. New models, the lower-priced R2 series, are expected to give the company a boost.

The likely decline in sales for this quarter means cost management is key. That is why investors will likely be happy with the positive gross profit.

Wall Street currently projects a positive gross income of $47 million for the fourth quarter. Sales are expected to be down to $1.2 billion. It might be difficult to maintain margins with fewer cars being sold.

Coming into the week, Rivian stock was up about 2% in 2025. Investors just haven't been sure what to do with the stock as U.S. policy regarding EVs has changed this year.

Write to Al Root at allen.root@dowjones.com

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November 05, 2025 16:48 ET (21:48 GMT)

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