Rivian Automotive reported strong third-quarter earnings for 2025, with revenue reaching $1.56 billion, beating Wall Street estimates of $1.5 billion and marking a 78% increase from the $874 million recorded in the same quarter last year. The company attributed part of this growth to customers accelerating purchases ahead of the expiration of federal EV tax credits in September.
Notably, Rivian posted a gross profit of $24 million, outperforming FactSet consensus expectations of a $38.6 million loss and achieving its second quarterly gross profit this year. This was driven by a $154 million contribution from its Volkswagen joint venture and software services, which offset a $130 million loss in automotive operations. However, the net loss widened slightly to $1.17 billion from $1.1 billion a year earlier, with an adjusted loss per share of 65 cents, better than the anticipated 72 cents.
Rivian maintained its full-year 2025 guidance, projecting vehicle deliveries between 41,500 and 43,500 units and an adjusted EBITDA loss of $2 billion to $2.25 billion. The company ended Q3 with $7.7 billion in total liquidity, including nearly $7.1 billion in cash and short-term investments. On the production front, the R2 midsize SUV remains on track for manufacturing in the first half of 2026, with body shop equipment fully installed and robot commissioning underway at its Illinois plant.
Despite the positive results, Rivian and peers like Lucid face ongoing challenges, including higher costs, reduced regulatory credit revenue, and tariff impacts. Rivian's regulatory credit revenue fell to around $160 million from an initial $300 million projection, and tariffs are now estimated to cost hundreds of dollars per unit instead of thousands, following policy adjustments. The third quarter likely represented a peak in U.S. EV demand before credit expirations, with analysts warning of potential sales slowdowns ahead.
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