Key Takeaways Rivian unveiled its in-house RAP1 chip, new autonomy computer and AI assistant at its Autonomy & AI Day.New hardware supports hands-free driving, LiDAR adoption and aims toward future Level 4 capabilities.The upcoming R2 model and VWAGY partnership offer growth potential amid rising costs and softer guidance.California-based electric vehicle (EV) company Rivian Automotive (RIVN) hosted its first Autonomy & AI Day yesterday. The focus was clear— stronger autonomy, better artificial intelligence ...

Core Insights - Rivian Automotive's stock surged by 25.4% following a positive third-quarter report, surprising investors with a gross profit of $24 million instead of the expected loss of nearly $40 million [1][3][9] - The automotive division showed significant improvement in gross profit, and the software and services segment achieved a 37% gross margin [3][9] - Rivian successfully reduced its cost of automotive revenue per vehicle delivered by $19,000 compared to the previous year, while maintaining its guidance amid a competitive EV market [4] Company Developments - Rivian is set to begin deliveries of its new R2 model in the first half of 2026, with production starting at its expanded Illinois factory [5] - The company broke ground on a new facility in Georgia during the third quarter, which will support long-term capacity growth for its new mid-size platform [5] - Recent uncertainties had previously led to a drop in shares, but the outlook has improved significantly following the latest report [5][6]

Market Overview - The U.S. stock market experienced a downturn, with major indices like the S&P 500 and Nasdaq showing negative futures [1] - The Dow Jones Industrial Average fell 0.5% to 47,085.24, the S&P 500 dropped 1.2% to 6,771.55, and the Nasdaq decreased 2.04% to 23,348.63 [2] Company Performance Advanced Micro Devices Inc. (AMD) - AMD reported third-quarter revenue of $9.25 billion, exceeding analyst expectations of $8.74 billion [3] - Adjusted earnings per share were $1.20, surpassing estimates of $1.16, driven by growth in the AI data center business [3] - AMD shares fell 3.70% to close at $250.05, with after-hours trading showing a further decline of 4.7% to $238.20 [2] Super Micro Computer, Inc. (SMCI) - Super Micro Computer reported earnings of 35 cents per share, missing the expected 40 cents, leading to a stock decline [4] - Quarterly revenue was $5.01 billion, below analyst estimates of $5.99 billion and down from $5.93 billion a year earlier [4] - The stock dropped 6.40% to $47.50, with after-hours trading showing a decline of 9.5% to $42.99 [3] Upstart Holdings, Inc. (UPST) - Upstart reported earnings of 52 cents per share, beating the estimate of 42 cents, but revenue fell short of expectations [6] - The company projected fourth-quarter revenue of $288 million, below the $303.61 million analyst estimate, and cut its fiscal 2025 revenue outlook to $1.03 billion from $1.05 billion [6] - Shares slid 2.73% to $46.24, plummeting 15.3% to $39.15 in extended trading [5] Pinterest Inc. (PINS) - Pinterest reported third-quarter revenue of $1.05 billion, aligning with analyst estimates, but adjusted earnings of 38 cents per share missed the expected 42 cents [8] - The company forecasted fourth-quarter revenue between $1.31 billion and $1.34 billion, slightly below estimates of $1.34 billion [8] - Shares decreased by 2.39% to $32.91, dropping sharply by 20.09% to $26.30 in after-hours trading [7] Rivian Automotive (RIVN) - Rivian reported third-quarter revenue of $1.56 billion, up 78% year-over-year and above the $1.50 billion estimate [11] - Automotive revenue rose 47% to $1.14 billion, while software and services revenue surged 324% to $416 million [11] - The stock fell 5.23% to $12.50, but gained 3.2% to $12.90 in extended trading [10]

Core Thesis - Rivian Automotive, Inc. is positioned at a critical inflection point with positive cash flow from operations achieved in Q2 2025, indicating the viability of its vertically integrated platform [2] - The upcoming R2 model, a two-row SUV priced under $50,000, is expected to significantly expand Rivian's revenue while maintaining cost efficiency [2][3] Financial Performance - Rivian's software capabilities have generated $372 million in annualized revenue, a substantial increase from $84 million the previous year, largely due to a joint venture with Volkswagen [3] - The company has a market capitalization of $18.5 billion and a price-to-sales ratio under 4, suggesting that the market has undervalued Rivian's potential [5] Strategic Partnerships - The partnership with Volkswagen includes a $1 billion equity investment, showcasing Rivian's ability to provide a scalable software stack across various vehicles [3] - Rivian's strategic shift is supported by its software platform, which positions it as a competitor to Tesla in the automotive software space [3] Long-term Opportunities - Rivian aims to become a next-generation automotive platform for legacy OEMs, similar to historical examples of Ferrari and Buick [4] - The company is also exploring new mobility solutions and advancing autonomous features to broaden its platform's reach [4] Market Sentiment - Despite Rivian's potential, it is not among the 30 most popular stocks among hedge funds, with a decrease in hedge fund portfolios holding RIVN from 41 to 38 [7] - The stock has appreciated approximately 46% since a previous bullish thesis, indicating growing investor interest [6]

RT Bloomberg TV (@BloombergTV)Rivian is reworking a key element of its vehicle doors after employees and customers raised concerns over potential safety issues with the current design, according to people familiar with the matter. @EdLudlow has the breaking news on the R2 model https://t.co/aMthbOiCxB https://t.co/C0qw2URkaY ...

EV maker Rivian just releasing its latest delivery results. Philo has the numbers on that. Hey Phil. >> Hey Becky.Take a look at shares of Rivian. Not seeing a whole lot of movement so far. Q3 the company delivered 13,21 vehicles with production coming in at 10,720.It is the guidance that may get some attention today. Previously their guidance for fullear delivery was between 40 and 46,000 vehicles. They have tightened that especially on the upper end.It is now between 415 and 435. That is now the fullear d ...

Core Insights - Rivian delivered 13,221 vehicles in Q3, with production at 10,720 units, but the stock is down by approximately 2.8% due to revised delivery guidance [1][2]. Delivery Guidance - Rivian has adjusted its full-year delivery guidance to between 41,500 and 43,500 vehicles, tightening the upper end from the previous range of 40,000 to 46,000 [2][3]. Production and Future Sales - The company's ability to maintain current sales levels is under scrutiny as it prepares for the next generation R2 model, expected to launch around mid-next year, contingent on production ramp-up at its Illinois plant [3][4]. Capital Preservation - The absence of EV tax incentives during this transitional period raises questions about Rivian's capital preservation strategies as it moves forward [4].

Core Viewpoint - Rivian is optimistic about its future growth in electric vehicle (EV) sales despite anticipated challenges from the end of the federal EV tax credit, with plans for new models and production facilities [2][3][9]. Rivian's Future Plans - Rivian expects a dip in EV sales overall in the fourth quarter but anticipates stabilization in 2026 [2]. - The company plans to produce its R2 model, priced at $45,000, starting next year in Illinois, with an additional facility expected to begin production in 2028 [3]. - There are plans for an R3 model in the future, which will be an even lower-priced option [3]. Financial Support and Risks - The Department of Energy has provided Rivian with a $6.17 billion loan for the construction of its facility, but there are concerns about the loan's future under the current administration [9][10]. - Potential economic downturns could impact EV sales, and the success of Rivian's plans will depend on various factors playing out over the next few years [11][12].

Core Viewpoint - Rivian's stock is experiencing bullish momentum, with a Needham analyst providing an optimistic outlook and maintaining a 'Buy' rating with a price target of $14, driven by confidence in the company's upcoming product lineup [1][3][4]. Group 1: Stock Performance - As of the latest update, Rivian's shares are trading at $13.26, reflecting a 1.3% increase, with a weekly gain of over 6% and a year-to-date increase of only 0.11% [1]. - The average 12-month price target for Rivian is $13.83, indicating a modest upside of 4.38% from the current price [6]. Group 2: Product Development - The upcoming R2 model, a mid-size SUV priced around $50,000, is crucial for Rivian as it aims to expand its consumer base beyond the higher-end R1 series [4]. - The R2 model is expected to enhance Rivian's total addressable market, positioning the company favorably in the electric vehicle sector [4]. Group 3: Market Sentiment - Despite the positive outlook from Needham, Wall Street remains cautious, with a consensus 'Hold' rating from 23 analysts, including 7 'Buy', 13 'Hold', and 3 'Sell' recommendations [6]. - Rivian's stock has faced volatility over the past year, struggling to maintain consistent upward momentum amid competition from established players like Tesla [8]. Group 4: Consumer Insights - Encouraging survey results from regions with low electric vehicle penetration indicate strong brand awareness and promising purchase intent for Rivian vehicles [5].