Rivian Stock Just Surged 25% in 1 Day. Here's Why Shares Are Still a Buy.

• Rivian's income popped past quarter.

• Another large update bodes good for 2026.

• 10 stocks we similar amended than Rivian Automotive ›

Rivian Automotive (NASDAQ: RIVN) banal exploded 25% higher aft it reported third-quarter net Nov. 4. Obviously, the results were positive. But whether you're a Rivian capitalist oregon ain shares of different electrical conveyance (EV) stocks similar Tesla oregon Lucid Group, determination are 2 important updates to look at.

For immoderate analysts, the biggest affirmative quality delivered during net was Rivian's 78% spike successful revenue. Revenue deed $1.56 cardinal compared to estimates of astir $1.49 billion, partially owed to higher-than-expected deliveries. I speculated that this mightiness beryllium the lawsuit successful October, since national taxation credits for caller EV purchases expired astatine the extremity of September. Potential EV buyers were forced into enactment successful bid to instrumentality vantage of expiring subsidies, meaning those who were connected the obstruction were incentivized to marque purchases past quarter. The result: a large surge successful quarterly income versus the twelvemonth prior.

Here's the catch: Rivian's existing models -- the R1T and R1S -- didn't adjacent suffice for national taxation credits this year, since their batteries did not person capable worldly components sourced oregon manufactured successful North America. Consumers were inactive capable to entree the subsidy via lease deals, however, and expiring taxation credits apt spurred radical to see EVs overall, adjacent those that didn't qualify.

Regardless of wherever its buyers came from, Rivian won't payment from this one-time income surge again. The institution didn't merchandise a caller merchandise to warrant this income spike. Nor did it connection peculiar deals oregon financing. The income popular was generated by imaginable buyers being incentivized to finalize a acquisition determination this quarter, pulling guardant buyers that volition nary longer beryllium determination successful aboriginal quarters. "October is going to beryllium a spot of a funky month, due to the fact that you had truthful overmuch propulsion forward," Rivian CEO RJ Scaringe explained.

This "pull forward" could really make a resistance connected aboriginal net reports unless Rivian generates a caller buying opportunity. Fortunately, that's precisely what the institution announced successful its net telephone with analysts.

The astir breathtaking happening an EV institution tin bash is merchandise a conveyance priced nether $50,000. According to surveys, astir 70% of Americans are hoping to walk little than $50,000 connected their adjacent conveyance purchase. But the availability of EVs nether this terms constituent is limited. Right now, Tesla dominates the wide market. Its Model Y and Model 3 vehicles unsocial comprise much than 90% of Tesla's conveyance revenue.