Add as a preferred source on GoogleRivian’s Q3 Results Prompt Jefferies to Raise Rating to Buy
Revenue came in at $2.16 billion, and Rivian raised the low end of its full-year delivery outlook to 67,000 vehicles.
Stronger-than-expected sales and signs of an automotive margin turnaround led Jefferies to move its Rivian rating from Hold to Buy on Friday, signaling progress in a key profitability measure.
Rivian recorded $2.16 billion in revenue for the third quarter, above the $2 billion analyst estimate. Its loss was 48 cents per share, narrower than the expected 64 cents.
Gross profit for the period was $176 million, and the overall gross margin was 8%. Jefferies analyst Philippe Houchois highlighted automotive gross margins “turning positive.”
The rating change followed a 32% decline in Rivian shares over the prior three months. Jefferies said the drop “creates a new entry point” to buy the stock and kept its $17 price target. Rivian closed Thursday at $11.45, then rose more than 5% early Friday to above $12; the shares were down 42% for 2026 through Thursday.
Rivian lifted its full-year delivery forecast to a range of 67,000 to 70,000 vehicles, from 65,000 to 70,000. The R2 mid-size SUV was the company’s top-selling model by volume during the quarter, and management expects higher-than-expected order conversions for its high-end trim.
Jefferies also pointed to Rivian’s planned 2027 commercial launch of its Point-to-Point driver-assistance feature and Volkswagen’s ID.1 launch with Rivian software as milestones for the company’s software business. The firm sees potential for additional software licensing deals.