Rivian Automotive (RIVN) Stock Forecast & Price Target

Rivian Automotive reported record Q3 2025 results, with revenue rising 78% year-over-year to $1.56 billion, primarily driven by increased average selling prices and an expansion in software and services revenue from new partnerships. The total automotive revenue also increased by 47% year-over-year to $1.14 billion, supported by higher vehicle deliveries ahead of tax credit expiration. Additionally, Rivian's software and services revenues surged 324% year-over-year to $416 million, further enhancing its financial outlook as the company progressively captures a larger share of the North American new vehicle market.

Rivian Automotive's stock outlook is negatively impacted by slower-than-expected growth in unit deliveries and delays in the launch of new vehicle models, which have resulted in reduced unit estimates and hindered gross margin improvements due to high fixed costs. The company faces a range of operational risks, including macroeconomic concerns, ongoing supply chain issues, and production setbacks at its Normal, Illinois factory, all of which could adversely affect its ability to meet business objectives. Furthermore, intensifying competition in the electric vehicle market, alongside potential regulatory challenges and product performance issues, poses significant threats to Rivian’s operational stability and long-term growth prospects.