Rivian’s Stock Soars Following Strong Q3 Earnings and R2 Excitement

LOS ANGELES, CA — Rivian Automotive, the electric vehicle manufacturer, saw its shares climb over 15% during morning trading on Wednesday following the release of its third-quarter earnings report. The report revealed a nearly 80% increase in sales year over year, driving investor enthusiasm.

Rivian reported $1.6 billion in revenue for Q3, surpassing Wall Street’s expectations. The company’s earnings call, held on Tuesday evening, emphasized their upcoming midsize SUV, dubbed the R2, which CEO R.J. Scaringe described as a significant product for the company.

“We’re very, very bullish on what we’re building with the R2,” Scaringe said during the call. “The way we think about it as a team is we’re building the best car you can buy in this category and in this price point.” The R2 is expected to be priced between $45,000 and $50,000.

Scaringe also noted that the production costs for the R2 are anticipated to be half of those for Rivian’s R1 model. The company is focusing on the R2 as a direct competitor to Tesla‘s Model 3 and Model Y, which currently dominate the market.

In terms of production, Rivian plans to allocate nearly three-quarters of its Normal, Illinois plant to R2 manufacturing, preparing for its launch in the first half of 2026. CFO Claire McDonough mentioned that while there would be limited volumes in the initial phases, production would ramp up throughout the year.

Investors reacted positively to Rivian’s commitment to their production timeline, leading to a significant increase in stock prices. Rivian closed the quarter with $7.1 billion in cash and various investments, down slightly from $7.5 billion in the previous quarter. A robust retail sentiment surrounding Rivian was also noted on platforms like Stocktwits, where users expressed excitement about the R2’s potential.

As Rivian looks toward the future, it remains focused on its delivery guidance of 41,500 to 43,500 vehicles for 2025, while continuously enhancing its manufacturing infrastructure and product lineup.