Why Did Rivian Stock Surge Higher on Friday?
Key PointsRivian's new R2 is already its best-selling EV.
On Friday, Rivian stock experienced a surge despite the tech sector and Nasdaq Composite experiencing a significant decline. Rivian Automotive (RIVN +2.23%) reported another quarterly loss but demonstrated signs of progress towards profitability. The company boosted its earnings guidance, which contributed to a 7% increase in the stock price early Friday. As the Nasdaq tumbled, Rivian's stock was holding a 1.1% gain.
Rivian's production ramp-up of the new R2 SUV played a crucial role in the stock's surge. The company surpassed third-quarter earnings expectations and increased 2026 guidance. Although Rivian still reported a quarterly loss, it was $0.14 better than Wall Street's expectations. Revenue also significantly exceeded predictions.
Gross profit for the quarter was $176 million, and operating loss improved by $100 million compared to the previous year. Rivian ended the quarter with over $5.5 billion in cash and equivalents. With the acceleration of R2 production, the company anticipates that the vehicle will achieve a positive gross margin by the end of the year, paving the way to overall profitability.
CEO R.J. Scaringe emphasized the importance of the R2 ramp-up to achieve positive gross margins for the business in an interview with CNBC. This positive outlook attracted investors to Rivian stock today, contributing to its surge.
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