Rivian Automotive (RIVN 1.30%) stock soared after the electric vehicle (EV) announced a flurry of good news in its third-quarter report yesterday. Investors reacted by pushing shares sharply higher.
Rivian stock was trading around the highs of the session, up by 25.4%, as of 2:56 p.m. ET. Here's why.
Image source: Rivian Automotive.
Rivian is driving in the right direction
Rivian reported a positive gross profit of $24 million against expectations of a nearly $40 million loss. The gross profit in its automotive division improved significantly versus the prior-year period. The company also got a big boost from its software and services. That segment achieved a 37% gross margin.
Investors are also cheering the fact that Rivian reduced its cost of automotive revenue per vehicle delivered by $19,000 compared to last year. The automaker maintained its prior guidance for the year amid a competitive EV market and with tariff and regulatory uncertainty.
NASDAQ: RIVN
Key Data Points
Those uncertainties led to a drop in shares in the recent weeks leading up to yesterday's report. But things are looking brighter now, with Rivian set to begin deliveries of its new R2 model in the first half of 2026. That model will begin production at Rivian's expanded Illinois factory.
The company also broke ground for its new Georgia facility in the third quarter, though. That will allow for longer-term capacity growth of the new mid-size platform.
Investors are feeling more optimistic about Rivian's future now, and that showed in today's stock movement upward.
