Top News

• Goldman Sachs' new price target of $13 still represents a 4% potential upside to the stock’s closing price on Tuesday.
• For the third quarter, Rivian reported consolidated revenue of $1.56 billion, representing a 78% year-over-year growth and exceeding an analyst estimate of $1.51 billion.
• Rivian now plans to begin manufacturing validation builds of its new R2 vehicle at the end of the year. 
  

Goldman Sachs said on Wednesday that EV startup Rivian Automotive’s long-term profitability is expected to improve as it scales up production of its R2 SUV, despite facing near-term earnings pressure.

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The firm lowered its price target on EV maker Rivian to $13 from $15 while keeping a ‘Neutral’ rating on the shares. The new price target of $13 still represents a 4% potential upside to the stock’s closing price on Tuesday.

Goldman Sachs’ Take

Rivian’s lower cost per vehicle sold in the third quarter reflects strong material cost reductions and reduced tariff impacts following recent U.S. policy changes, the analyst told investors in a research note, as per TheFly. Rivian management expects these savings to extend to the company’s upcoming R2 SUV, and is targeting positive gross margins by late 2026.

Near-term, earnings before interest, taxes, depreciation, and amortization (EBITDA) will likely stay under pressure due to the expiry of the federal tax credit of $7,500 on new EV purchases and higher autonomy investments. Still, long-term profitability is expected to improve with R2 scaling and growth in software and services segment, according to Goldman Sachs.

Rivian Q3 Numbers

For the third quarter, Rivian reported consolidated revenue of $1.56 billion, representing a 78% year-over-year growth and exceeding an analyst estimate of $1.51 billion, according to Fiscal AI. Automotive revenue alone totaled $1.14 billion.

The company delivered 13,201 vehicles in the quarter and now expects to report lower deliveries in the fourth quarter as it prepares for the launch of its R2 SUV in the first half of 2026. The R2, unlike Rivian’s R1 vehicles, which are priced over $70,000, is expected to have a price of around $45,000. The company plans to begin manufacturing validation builds of its new vehicle at the end of the year.

Adjusted loss in the third quarter came in at $0.65, down from the loss of $0.99 reported in the corresponding quarter of last year, and below an estimated loss of $0.71.

The company also stated that it achieved a nearly $19,000 reduction in automotive cost of revenues per vehicle delivered year-over-year in Q3, and the cost of goods sold per unit delivered during the period was approximately $96,000.

For the full year, Rivian expects vehicle deliveries to be between 41,500 and 43,500 units, while adjusted EBITDA is expected to be between $2 billion and $2.25 billion.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RIVN jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

RIVN stock is up 16% this year and approximately 45% over the past 12 months. 

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