According to CNBC, Rivian Automotive 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 this through its Volkswagen joint venture and software services business, which contributed $154 million to offset a $130 million loss in automotive operations. Rivian 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. The company expects to deliver 41,500 to 43,500 vehicles this year while showing a $249 million improvement in automotive losses compared to the same period last year.
The Profit Puzzle
Here’s the thing that really stands out: Rivian’s automotive business is still losing money, and losing it pretty significantly at $130 million last quarter. But they managed to flip the script overall by leaning heavily on that Volkswagen partnership and their software/services division. Basically, they’re proving there’s more than one way to make money in the EV space.
And that’s actually pretty smart. While everyone’s focused on whether they can build cars profitably – which they clearly can’t yet – they’re finding revenue streams elsewhere. The question is, can they keep this up? Or is this just a temporary patch while they figure out the manufacturing side?
The Guidance Gamble
What’s interesting is that despite beating expectations, Rivian didn’t raise their 2025 guidance. They’re sticking with that $2 billion to $2.25 billion loss projection. That tells you they’re being realistic about the challenges ahead.
Look, building EVs at scale is brutally expensive, and Rivian’s burning through cash like there’s no tomorrow. Maintaining guidance might not sound exciting, but in this environment, it’s probably the right move. Overpromising has killed more EV startups than underdelivering.
The Partnership Play
The Volkswagen deal is clearly doing heavy lifting here, contributing significantly to that gross profit number. We don’t know the exact breakdown between the JV money and software services, but it’s enough to make you wonder: is this the future model for EV startups?
Instead of trying to do everything themselves, maybe partnering with legacy automakers who have cash and manufacturing expertise is the smarter play. It certainly seems to be working for Rivian right now. The automotive losses improved by $249 million year-over-year, which suggests they’re moving in the right direction, even if slowly.
What Comes Next
So where does this leave Rivian? They’re showing they can find creative ways to generate profit, but the core business – making and selling vehicles – still needs work. The delivery guidance of 41,500 to 43,500 vehicles this year puts them in a decent position, but they need to scale much higher to achieve true profitability.
The real test will be whether they can continue improving their automotive margins while maintaining these alternative revenue streams. If they can, they might just have a shot at surviving the EV bloodbath. If not, well, let’s just say the road ahead looks bumpy.
