Key Points
Rivian's new R2 is already its best-selling EV.
Revenue increased 38% year over year.
Rivian boosted the midpoint of its 2026 delivery guidance by 1,000 units.
The stock market is ending the week on a sour note. Tech stocks, especially, are being knocked down today. But even with the Nasdaq Composite down over 3.5% as of 2:20 p.m. ET, electric vehicle (EV) maker Rivian Automotive (NASDAQ:RIVN) is bucking the trend.
Rivian reported another quarterly loss last night, but there are signs the company is heading toward profitability. Boosted guidance also helped the stock jump over 7% early Friday.
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The stock was clinging to a 1.1% gain as the Nasdaq tumbled, though.
Image source: Getty Images.
A successful ramp-up of production of Rivian's new R2 SUV led the company to beat third-quarter earnings expectations and increase 2026 guidance. While still reporting a quarterly loss, it was $0.14 better than what Wall Street expected. Revenue also handily beat estimates.
Rivian reported an overall gross profit of $176 million and improved its operating loss by $100 million compared to last year.
Rivian ended the quarter with over $5.5 billion in cash and equivalents. With Rivian ramping R2 production, it expects that vehicle to have a positive gross margin by the end of this year. Ultimately, that should help pave the way to profitability for the company as a whole.
CEO R.J. Scaringe stated in an interview with CNBC, "That ramp-up is critical for us getting to positive gross margin on R2, and that ultimately will contribute to positive gross margin for the business."
That optimistic tone had investors jumping into Rivian stock today.
Howard Smith has positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.