Rivian(RIVN.US) Q3 revenue misses expectations, Wall Street analysts have mixed views

Wall Street analysts have differing views on Rivian Automotive (RIVN.US) after the company reported weaker-than-expected third-quarter revenue.

Rivian said the current consumer environment is more challenging. The electric vehicle maker is also affected by supply chain issues.

Rivian management highlighted its cooperation with Volkswagen at the earnings call and expects more deliveries to Amazon in the fourth quarter and new commercial vehicle deals in 2025. The company is also focused on finding suppliers that will not be affected by high tariffs.

After the earnings release, Bank of America downgraded Rivian to "neutral" from "buy." Analyst John Murphy said the milestone of turning positive gross margin is important, but warned that it would benefit from regulatory credits, which could be at risk during the Trump administration. Murphy and his team currently expect only modest growth in Rivian's deliveries in 2025.

Wedbush Securities maintained its "outperform" rating on Rivian. Analyst Dan Ives said Rivian's cooperation with LG and Volkswagen is still a key part of the 4695 battery production and capital story. He warned: "While we remain confident in Rivian's long-term vision, the company still needs to take some significant steps to regain Wall Street's trust in the near term."

Rivian reported third-quarter revenue of $874 million, down 34.6% year-on-year, below the market's expectation of $1 billion; a loss of $1.08 per share, compared with a loss of $0.96 per share expected by the market. Rivian reiterated its full-year delivery target of 50,500 to 52,000 vehicles.

As of the time of writing, Rivian rose 0.50% before the market opened to $10.1.