Rivian Cost Cuts Pay Off With Smaller-Than-Expected Loss
CEO Scaringe Pushing to Control Expenses and Corral Years of Losses as EV Maker Prepares to Launch New Midsize R2 SUV in 2026
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Rivian Automotive reported a smaller-than-expected loss in a sign of progress as the electric vehicle maker cuts costs and staff ahead of plans to begin deliveries of a new midsize SUV next year.
The third-quarter adjusted loss was 65 cents a share, the company said in a letter to shareholders. That’s better than the 71-cent average deficit expected by analysts. Rivian slashed automotive cost of revenue by nearly $19,000 on a per-vehicle basis year over year, according to the letter.
CEO RJ Scaringe is pushing to control expenses and corral years of losses as Rivian prepares to launch a new midsize R2 SUV next year. The model is critical for Rivian’s goal to boost sales volume and achieve profitability in the future. Rivian said it’s on track for R2 deliveries in the first half of 2026.
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Rivian’s shares rose 3.6% at 4:26 p.m. in after-hours trading in New York. The stock had declined less than 1% this year through the Nov. 3 close, trailing the S&P 500 Index’s nearly 17% advance.
The first Rivian Electric Delivery Vans have arrived in Canada as announced that 50 vans are hitting the road to serve the Vancouver area – marking an exciting milestone in our five-year history of operations in Canada. 🍁 — Rivian (@Rivian)
Higher third-quarter EV deliveries helped boost revenue 78% from a year earlier to about $1.56 billion, topping Wall Street estimates. The company sold more than 13,000 EVs in the period, helped by consumers rushing secure the $7,500 U.S. tax credit before it expired Sept. 30.
More recently, the auto industry has contended with the risk that a shortage of chips from Nexperia BV could halt production lines.
“This has not impacted us yet” even though it’s a “serious issue” for the industry, Scaringe said in a CNBC interview.
Rivan had already trimmed its vehicle-sales outlook twice this year and warned ofmounting losses. The company has also seen higher costs from President Donald Trump’stariffswhile the elimination of policies supporting EV adoption have hurt revenue.
“While we face near-term uncertainty from trade, tariffs and regulatory policy, we remain focused on long-term growth and value creation,” the company said in the letter.
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Consumers pulled back on EV sales in October, dropping 43% compared to the same month last year, according to automotive researcher Urban Science.
Rivian also said it set up a new company this month called Mind Robotics, focused on the advancement of AI-enabled robotics in industrial applications. The new venture secured about $110 million in external seed capital.
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