Is Rivian Stock Yesterday's News?

• Rivian's way to profitability continues to hinge connected its quality to standard up its accumulation and deliveries.

• The EV specializer delivered less vehicles successful 2025 than successful either 2024 oregon 2023.

• Shareholders are hoping that the company's R2 vehicles volition boost gross margins and trim its operating expenses per unit.

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Rivian (NASDAQ: RIVN) is gearing up to motorboat its adjacent conveyance platform, and the banal terms has surged by astir 36% implicit the past twelvemonth successful anticipation. Still, the electrical conveyance (EV) company's stock terms is down by astir 90% from the all-time precocious it touched successful precocious 2021 -- and large questions stay astir the business's imaginable way to profitability.

Growth successful the EV marketplace has slowed substantially since the institution held its archetypal nationalist offering successful 2021, and the emergence of contention from Chinese manufacturers could seriously dampen Rivian's maturation trajectory. Is Rivian banal yesterday's news, oregon could the EV shaper carve retired a durable position that translates into big returns for shareholders who bargain now?

In the 3rd quarter, Rivian's gross grew by 78% twelvemonth implicit twelvemonth to astir $1.56 billion. It besides posted a gross nett of $24 cardinal -- an betterment of $416 cardinal compared to the prior-year period, erstwhile it booked a steep gross loss. Rivian has begun to station affirmative gross margins, which is admittedly a major affirmative development. On the different hand, those gross margins are still precise debased -- and it continues to station big nett losses.

Its automotive gross profits inactive came successful at antagonistic $130 million. That shrunk its automotive gross nonaccomplishment by $249 cardinal compared to past year's Q3, but its outgo of goods sold continues to beryllium higher than its revenue.

The institution delivered 13,201 vehicles successful the 3rd 4th and announced astatine the opening of this period that it had delivered 9,745 vehicles successful Q4. The late-year drop-off meant that the institution closed retired 2025 with less deliveries than it posted successful either 2023 oregon 2024, and connected a quarterly basis, it has yet to surpass the highest of 15,564 units delivered successful the 3rd 4th of 2023.

With the institution connected the verge of rolling retired its R2 SUVs, Rivian volition person opportunities to reenergize deliveries and importantly summation its lawsuit base. The R2 models volition beryllium significantly cheaper than the company's R1 models. A surge successful portion request should assistance the institution enactment the enlargement of its manufacturing and supply it with immoderate economies-of-scale benefits, but it could inactive beryllium a portion earlier Rivian is posting affirmative gross profits connected its vehicles.