Rivian Automotive surpassed Wall Street expectations in the third quarter, reporting its second quarterly gross profit this year due to a joint venture with Volkswagen and strong performance in software and services. The company’s gross profit of $24 million beat estimates, with automotive operations improving significantly from the previous year.

Rivian’s stock rose more than 3% in extended trading following the earnings report, despite a 5.2% decline in regular trading. The company reaffirmed its 2025 guidance with adjusted earnings loss between $2 billion and $2.25 billion and production timing for the new R2 midsize vehicle on track for next year.

CEO RJ Scaringe expressed confidence in the company’s supply chain readiness for the R2 launch, despite concerns about rare earth minerals from China and chips from China-owned supplier Nexperia. Rivian’s revenue for the third quarter increased by 78% compared to the previous year, with a net loss slightly widening to $1.17 billion.

Rivian ended the third quarter with $7.7 billion in total liquidity, positioning the company well for the R2 launch. The stock is down roughly 6% for the year, but investors view the company’s gross profit as a key indicator of profitability before expenses.

Read more at CNBC: Rivian (RIVN) earnings Q3 2025