According to CNBC, Rivian Automotive just beat Wall Street’s third-quarter expectations by reporting a $24 million gross profit when analysts expected a $38.6 million loss. The company achieved its second quarterly gross profit this year thanks to a $154 million boost from its Volkswagen joint venture and software services business. Meanwhile, Rivian’s core automotive operations still posted a $130 million loss, though that represents a $249 million improvement from the same period last year. The company maintained its previously lowered 2025 guidance, projecting an adjusted earnings loss between $2 billion and $2.25 billion with capital expenditures of $1.8 billion to $1.9 billion. Rivian also stuck to its vehicle delivery forecast of 41,500 to 43,500 units for the year.
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The Real Story Behind the Numbers
Here’s the thing about Rivian’s “profit” – it’s not coming from actually selling vehicles profitably. Their automotive business is still losing money, and that $130 million loss would look much worse without the VW partnership and software revenue propping things up. But honestly? That’s not necessarily a bad thing. It shows Rivian is building multiple revenue streams beyond just moving metal, which is exactly what EV startups need to survive these brutal market conditions.
The real question is whether this model is sustainable. I mean, counting on joint venture money and software to offset vehicle losses works until it doesn’t. But look at the improvement – cutting that automotive loss by nearly $250 million year-over-year shows they’re making real progress on manufacturing efficiency. That’s the kind of trend investors want to see, even if the road to full profitability remains long.
Where Rivian Fits in the EV Bloodbath
In today’s EV market, simply surviving is winning. While companies like Fisker have collapsed and others are scaling back ambitions, Rivian is showing it can adapt. Maintaining guidance while hitting these profit milestones suggests they have better visibility than many competitors. The VW partnership gives them something most EV startups lack: deep-pocketed backing from an automotive giant that needs their technology.
Basically, Rivian is playing a different game than Tesla or the traditional automakers. They’re not trying to be the volume leader – they’re building a premium brand with multiple revenue streams. The software and services component is particularly interesting because that’s where the real margins live long-term. If they can keep improving vehicle profitability while growing those high-margin businesses, they might actually have a path to sustainability when many others don’t.
