Rivian Automotive, Inc. (NASDAQ:RIVN) shares slipped Friday as investors weighed mixed signals following the company’s third-quarter update.
- RIVN is among today’s weakest performers. Check the full analysis here
Momentum has cooled despite strong growth, with Wall Street parsing comments about future scale and cash needs.
On November 4, the EV company announced third-quarter total revenue of $1.56 billion, representing an 78% year-over-year increase, surpassing the Street consensus estimate of $1.50 billion.
Also Read: Rivian Robotics Spinoff Will ‘Reshape How Physical World Businesses Operate’
Rivian also reported a consolidated gross profit of $24 million for the quarter.
The company posted a loss of 65 cents per share, which was better than the analyst consensus estimate for a loss of 72 cents per share.
Analyst’s Take On Q3
JP Morgan analyst Ryan Brinkman reiterated the Underweight rating, with a price forecast of $10.
Brinkman said Rivian should grow rapidly after 2025 but burn significant capital to do it.
He stated that valuation support comes from comparisons with Tesla, Inc. (NASDAQ:TSLA), Lucid Group, Inc. (NASDAQ:LCID), and Chinese EV peers.
However, the analyst viewed comparisons with General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) as tougher to justify. On his estimates, RIVN trades below Tesla but above Chinese BEV peers.
Brinkman said Rivian posted a positive third-quarter gross profit, its third since going public. It marked the first profitable quarter without help from phased-out regulatory credits.
The analyst remarked that management maintained its 2025 EBITDA loss outlook unchanged following the release of second-quarter guidance.
Brinkman cited that prior gross profits were larger in the fourth quarter of 2024 and the first quarter of 2025. Those periods benefited from $299 million and $157 million of regulatory credits, respectively.
Brinkman said the softer third-quarter results and management commentary prompted updated projections.
He now models a 2025 EBITDA loss of about $2.2 billion, compared with $2.0 billion previously. His 2026 estimate now projects a $1.6 billion loss, down from a $1.5 billion loss previously.
For 2027, the analyst now expects a $200 million profit, down from a $300 million forecast.
RIVN Price Action: Rivian Automotive shares were down 4.01% at $14.61 at the time of publication on Friday, according to Benzinga Pro data.
Read Next:
Photo via Shutterstock
