Rivian Automotive shares advanced sharply on Friday, climbing 4.76% intraday for their strongest single-session gain in over two months, after the electric vehicle manufacturer posted third-quarter results that exceeded Wall Street expectations and lifted its full-year delivery outlook.
The stock move followed a quarter in which Rivian reported revenue of $2.16 billion, a 38% year-over-year increase, while its adjusted loss per share narrowed to $0.48. Management also improved its full-year adjusted EBITDA guidance to a loss of $1.75 billion to $1.85 billion, a $100 million improvement at the midpoint, and reduced capital expenditure guidance to a range of $1.4 billion to $1.5 billion.
Analysts point to R2 as a growth catalyst
Jefferies analyst Philippe Houchois upgraded Rivian to Buy from Hold while keeping a $17 price target, implying roughly 45% upside from current levels. Houchois argued that the R2 electric SUV is positioned to benefit as US EV demand stabilises, citing a relatively unique product void in the $45,000 to $55,000 price segment.
He sees an opening for Rivian between Tesla's increasingly commoditised lineup and Ford's forthcoming EV built on its Universal Electric Vehicle platform, which may not ramp meaningfully until late 2027. Houchois also noted that Rivian shares had corrected about 30% over the prior three months, a decline he views as an attractive entry point as production scales and the company explores licensing its autonomous driving technology.
Delivery guidance raised for 2026
Rivian lifted its 2026 delivery forecast to 67,000-70,000 vehicles from a prior range of 65,000-70,000. CEO RJ Scaringe said the R2, which began deliveries in June, has already become the company's best-selling vehicle, outpacing both the R1 models and its electric delivery vans. Rivian has added a second production shift for the R2 at its Illinois factory, with more affordable variants expected through late 2026 and 2027.
Wedbush highlights autonomy and software potential
Wedbush analyst Dan Ives maintained an Outperform rating with a $20 price target, calling the quarter "the beat-and-raise quarter the R2 story needed." He pointed to stronger-than-expected revenue, record deliveries and a narrower loss, and noted that management expects the R2 to help push the automotive business toward positive gross margins by year-end. The revised guidance implies fourth-quarter deliveries of 25,000 to 28,000 vehicles.
Beyond vehicle production, Ives flagged Rivian's software and autonomous driving ambitions, including joint ventures with Volkswagen and Uber Technologies. The Uber partnership is expected to unlock an additional $250 million in equity by the end of the year, supporting a planned 2028 robotaxi launch. Ives identified Rivian's AI and self-driving technology as potential catalysts ahead of its December 9 Autonomy and AI Day, suggesting these capabilities represent a part of the business investors have yet to fully value.
This article is for informational purposes only and does not constitute financial advice.
