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Rivian is focused on finding other sources of rare earth materials and magnets, says CEO RJ Scaringe

Name: Rivian is focused on finding other sources of rare earth materials and magnets, says CEO RJ Scaringe
Uploaded: 2025-11-04T23:10:21Z
Description: RJ Scaringe, Rivian CEO, joins 'Closing Bell Overtime' and CNBC's Phil LeBeau to talk quarterly results, rare earth materials, R2 production, and more.

11/4/2025, 11:10:21 PM

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Economic Summary

Rivian (RIVN) reported a smaller-than-expected Q3 loss of $0.65 per share versus the street at $0.72, with revenue of $1.56 billion and a modest gross profit of $24 million, signaling improving unit economics.
Rivian's gross margin improved to about 2% from negative 45% year-over-year, driven by lower cost of goods sold and software/services revenue of $154 million versus roughly negative $13 million last year, indicating higher-margin revenue mix.
Management reaffirmed deliveries guidance (41.5–43.5) and reiterated R2 production start mid-next year, supported by more than $7 billion cash and expanded Illinois manufacturing infrastructure, which underpins near-term ramp plans.
Macroeconomic and policy factors matter: pull-forward demand from the end of IRA created a lull in October, while geopolitical tensions and chip supply issues (Nexperia) and rare-earth constraints pose sector-wide risks to EV production.

Bullish

Rivian posted a smaller-than-expected loss and returned to a positive gross profit.
Lower cost-per-unit and strong deliveries point to improving production efficiency.
Rivian has over $7 billion in cash, supporting R2 launch and near-term liquidity.

Bearish

Supply-chain risks from chip-maker Nexperia could disrupt production and parts availability.
Dependence on rare earth metals raises long-term sourcing and cost concerns for EV production.
Post-IRA pull-forward demand may leave a lull in sales in Q4, pressuring near-term volume.
Company guidance still implies a large operating loss and uncertainty around margin improvement.

Bullish tickers

RIVN

Bearish tickers

RIVNNEXPERIA

RIVN

Bullish

RIVN beat EPS expectations, returned to positive gross profit, reduced COGS per unit, delivered strong volumes, and holds over $7B cash to fund R2 ramp.

Bearish

Despite better results, RIVN faces supply-chain risks (chips, rare earths), potential demand lulls after IRA pull-forward, and still-guided large operating losses.

NEXPERIA

Bullish

If resolved quickly, NEXPERIA supply could resume and relieve a major OEM component bottleneck.

Bearish

NEXPERIA-related export and regulatory issues could disrupt automotive chip supply chains and delay manufacturers' production.

People mentioned

Phil LeBeauMorganRJ ScarringeDonald TrumpXi Jinping