According to CNBC, Rivian Automotive just beat Wall Street’s Q3 expectations by reporting a $24 million gross profit when analysts expected a $38.6 million loss. This marks only the second time this year the EV maker has turned a gross profit. The positive numbers came despite Rivian’s core automotive operations still losing $130 million, though that’s a $249 million improvement from last year. The turnaround was driven by $154 million from their Volkswagen joint venture and software/services business. Meanwhile, 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.
Sponsored content — provided for informational and promotional purposes.
What’s really going on here?
Here’s the thing – Rivian isn’t actually making money building and selling electric trucks yet. Their automotive business is still bleeding cash, just less than before. The gross profit everyone’s excited about? It’s coming from that Volkswagen joint venture and software revenue, not from moving metal. Basically, they’re finding creative ways to offset their manufacturing losses while they scale up production.
And that’s the real story. Rivian’s core business model still isn’t profitable, but they’re buying time with these other revenue streams. The $130 million automotive loss is actually pretty impressive when you consider it was $379 million in the red during the same period last year. They’re getting more efficient, but they’re not there yet.
What this means for buyers
For current and potential Rivian owners, this is actually good news. A healthier Rivian means better long-term support, software updates, and service infrastructure. The fact that software and services are contributing meaningfully to revenue suggests Rivian is building out that ecosystem – something Tesla has proven is crucial for EV profitability.
But here’s the question everyone’s asking: When will the vehicles themselves actually be profitable? The company maintained its full-year delivery guidance of 41,500 to 43,500 units, which suggests they’re confident in their production ramp. Still, at that volume, they need to squeeze more margin out of each vehicle to stop the bleeding in their core business.
The bigger picture
Look, Rivian’s playing a dangerous game right now. They’re burning through cash while trying to scale in an increasingly competitive EV market. The Volkswagen partnership gives them breathing room and access to technology, but it’s not a long-term solution. They need to get their manufacturing costs under control and start making money on the actual vehicles.
The maintained 2025 guidance tells me they’re being realistic – they know this is a marathon, not a sprint. But with interest rates high and consumer demand uncertain, they can’t afford many missteps. This quarter was a win, but the real battle for profitability is still ahead.
