With Rivian Stock Surging, Is It a Buy Before 2025 Ends?

2 days ago 3
  • Rivian banal has surged much than 30% since the opening of November.

  • The EV shaper is flush with currency and has a beardown pipeline of electrical cars.

  • Rivian expects to statesman deliveries of its much-awaited affordable SUV successful 2026.

  • 10 stocks we similar amended than Rivian Automotive ›

With 2025 nearing its end, investors successful Rivian Automotive (NASDAQ: RIVN) received an aboriginal acquisition arsenic the banal logged its strongest monthly show of the year, jumping 24.2% successful November, according to information provided by S&P Global Market Intelligence. The banal has extended its rally into December, rising different 5% successful the period and 32% successful 2025, arsenic of this writing.

Rivian narrowed its 2025 transportation guidance to 41,500 to 43,500 vehicles from 40,000 to 46,000 units past month, but investors aren't worried. They're paying greater attraction to Rivian's important concern with Volkswagen and its caller electrical conveyance (EV) that'll vie head-on with Tesla's Model Y.

A Rivian motortruck  successful  the mediate  of Times Square.

Image source: Rivian.

Shares of Rivian surged aft the EV shaper reported its third-quarter results successful aboriginal November. Rivian's gross surged 78% twelvemonth implicit twelvemonth to $1.5 billion. While automotive gross roseate 47%, bundle and services gross jumped 324% to $416 cardinal arsenic Rivian wasn't providing these services successful 2024.

More than fractional of its bundle and services gross came from its associated task with Volkswagen. Rivian and Volkswagen formed a $5.8 cardinal associated task successful precocious 2024 to utilize Rivian's electrical architecture and bundle stack, with a absorption connected the motorboat of Rivian's R2 successful 2026 and the anticipated motorboat of the archetypal Volkswagen models successful 2027.

Most importantly, Rivian reported a gross nett of $24 cardinal successful Q3, compared to a gross nonaccomplishment of $392 cardinal successful Q3 2024, acknowledgment to higher mean selling prices and little accumulation costs. Rivian's automotive outgo of gross dropped importantly by astir $19,000 per conveyance delivered.

Those numbers sent Rivian shares soaring, arsenic the company's narration with Volkswagen is emerging arsenic a large maturation catalyst, pushing Rivian toward profitability and fast-tracking the motorboat of its mid-size electrical SUV, R2. Rivian is besides moving connected much affordable EVs, including all-electric crossovers R3 and R3X.

R2 should beryllium a crippled changer for Rivian arsenic it volition people its introduction into the astir lucrative car marketplace successful the U.S. – vehicles with a terms constituent of astir $50,000. Rivian expects to statesman accumulation and deliveries of R2 successful the archetypal fractional of 2026 from its Illinois factory, which volition person an yearly capableness of 155,000 vehicles. Rivian volition besides statesman operation of a caller works successful Georgia adjacent year, with an yearly capableness of 400,000 units.

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