Rivian Stock Can Rise More Than 30%. The R2 Isn’t Just for ‘Tesla Switchers.’
Rivian stock is rising following a third-quarter revenue increase of 38% and an upward revision of its full-year outlook across all metrics. The company reported that third-quarter earnings beat estimates, driven by growth in software revenue and R2 deliveries. UBS upgraded the stock, citing expected gross margin improvements as R2 production ramps up. Market sentiment is further bolstered by reports that R2 demand is outperforming the combined sales of the R1T truck, R1S SUV, and delivery vans. Barron's suggests the stock could rise more than 30% due to the R2's broad market appeal.
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- ✓ Rivian third-quarter revenue increased by 38%.
- ✓ Rivian third-quarter earnings beat estimates.
- ✓ UBS upgraded Rivian stock based on expected margin improvements from the R2 production ramp.
- ✓ Rivian raised its full-year outlook across all metrics.
What changed
Rivian reported a 38% Q3 revenue increase and received a stock upgrade from UBS.
Live updates
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Rivian Shares Rally on Strong Q3 Results and R2 Demand
Rivian stock is rising following a third-quarter revenue increase of 38% and an upward revision of its full-year outlook across all metrics. The company reported that third-quarter earnings beat estimates, driven by growth in software revenue and R2 deliveries. UBS upgraded the stock, citing expected gross margin improvements as R2 production ramps up. Market sentiment is further bolstered by reports that R2 demand is outperforming the combined sales of the R1T truck, R1S SUV, and delivery vans. Barron's suggests the stock could rise more than 30% due to the R2's broad market appeal.
Why it matters
The R2 model is a critical component of Rivian's strategy to reach profitability. While existing models target premium segments, the R2 aims to attract a diverse buyer base beyond former Tesla owners. Success depends on the company hitting specific margin milestones during the production ramp.
What is confirmed
- Rivian third-quarter revenue increased by 38%.
- Rivian third-quarter earnings beat estimates.
- UBS upgraded Rivian stock based on expected margin improvements from the R2 production ramp.
- Rivian raised its full-year outlook across all metrics.
Still unconfirmed
- Rivian raised delivery guidance to between 67,000 and 70,000 units.
What to watch next
- Actual delivery numbers for the R2 model
- Confirmation of automotive gross margin milestones
- Official full-year delivery totals
confidence 90%Sources used for this update (12)
- CNBC — Rivian third-quarter earnings beat estimates as software revenue, R2 deliveries rise
- Car and Driver — Rivian Says the R2 Is Outselling the R1T Truck, R1S SUV, and Its Delivery Vans Combined
- Barron's — Rivian Stock Can Rise More Than 30%. The R2 Isn’t Just for ‘Tesla Switchers.’
- Yahoo Finance — Why Rivian Stock Popped Today
- Jalopnik — Rivian Is Doing The Damn Thing
- tyriantrade.com — Rivian R2 Model: More Than Just for 'Tesla Switchers'
- www.timothysykes.com — Rivian Stock Rallies As R2 Demand, AI And Upgrade Fuel Momentum
- stockstotrade.com — Rivian Stock Climbs As R2 Demand And AI Bets Ignite Interest
- www.fool.com — Rivian Raised Guidance to 67,000-70,000 Deliveries. Here's ...
- finance.yahoo.com — Why is Rivian (RIVN) stock soaring today - Yahoo Finance
- 247wallst.com — Rivian Climbs 4% as UBS Upgrade Bets on R2 Ramp; Lucid and ...
- finance.yahoo.com — RIVN Stock Upgraded By UBS – Firm Calls 19% Sell-Off A Buying ...
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