Rivian Automotive (RIVN) Stock Forecast & Price Target

Rivian Automotive reported a significant 78% year-over-year increase in revenue for Q3 2025, totaling $1.56 billion, attributed to higher average selling prices and increased software and services revenue through new partnerships and enhanced features. The company's total automotive revenues also rose by 47% year-over-year to $1.14 billion, driven by a surge in vehicle deliveries linked to accelerated purchases preceding the tax credit expiration. Furthermore, software and services revenues experienced a remarkable 324% year-over-year growth to $416 million, signifying the company's successful expansion in value-added services and advanced vehicle technologies.

Rivian Automotive's stock outlook is negatively influenced by slower-than-expected growth in vehicle deliveries, with delays in the launch of their R2 and R3 vehicles further exacerbating financial projections and diminishing potential gross margin gains due to high fixed costs. The company faces significant operational risks, including supply chain challenges, a persistent chip shortage, and production ramp-up issues in its Normal, Illinois factory, all of which could hinder achieving planned output levels. Additionally, increasing competition in the electric vehicle market and broader macroeconomic concerns may adversely affect Rivian's ability to sustain its business and realize its strategic objectives.