Rivian Third-Quarter Earnings Beat Estimates as Software Revenue and R2 Deliveries Rise
Electric vehicle manufacturer Rivian reported better-than-expected third-quarter 2026 financial results, supported by rising vehicle deliveries, stronger software revenue and growing demand for its R2 electric SUV. The company also improved its full-year outlook as it continues efforts to expand production and reduce operating losses.
Rivian reported consolidated revenue of $2.155 billion for the quarter ended September 30, representing a 38% increase compared with the same period last year. The figure exceeded analyst expectations of approximately $2.02 billion. Adjusted losses came in at $0.48 per share, beating estimates of $0.61.
The company delivered 19,248 vehicles during the quarter, representing a 46% year-over-year increase. Its newly launched R2 SUV played an important role in the growth, attracting customers beyond Rivian’s premium R1 vehicle lineup. The model is central to the company’s strategy of reaching a wider market through a more affordable electric vehicle offering.
Software and services revenue also strengthened, reaching $605 million, an increase of 45% from the previous year. Growth was supported by vehicle software development, maintenance services, autonomous driving technology and Rivian’s partnership with Volkswagen.
Despite the improved results, profitability remains a challenge. Rivian’s automotive division recorded an $80 million gross loss, partly reflecting additional expenses associated with increasing R2 production.
The company raised its 2026 delivery forecast to between 67,000 and 70,000 vehicles, signalling confidence in its production capabilities and market demand. It also improved its adjusted EBITDA outlook.
The results highlight Rivian’s efforts to diversify revenue beyond vehicle sales while expanding its electric vehicle portfolio. However, maintaining delivery growth, controlling manufacturing expenses and improving margins will remain essential as the company competes against established automakers and emerging electric vehicle manufacturers.
Automakers Like Rivian and Ford Are ‘Democratizing 3D Printing’ to Reduce Costs and Increase Speed
Automakers including Rivian and Ford are increasingly adopting 3D printing to reduce manufacturing costs, accelerate vehicle development and improve production efficiency. The technology, once primarily used for prototyping and specialised engineering, is becoming an important tool in modern automotive manufacturing.
As manufacturers face rising production expenses and pressure to introduce new vehicles faster, additive manufacturing offers an alternative to certain traditional production methods. It allows engineers to create components directly from digital designs without relying on expensive moulds or specialised tooling.
Rivian is exploring 3D printing for prototypes, specialised vehicle components, production tools and replacement parts. The technology allows its engineering teams to test different designs, make modifications and evaluate components without waiting for lengthy conventional manufacturing processes.
Ford is also expanding its use of additive manufacturing across engineering and factory operations. The company uses the technology to develop prototypes, specialised tools and selected components. Producing certain tools internally can reduce procurement costs and help manufacturing teams respond more quickly to changing production requirements.
One of the biggest advantages of 3D printing is its ability to manufacture complex designs while reducing material waste. It can also support smaller production batches, making it useful for specialised components that do not justify expensive traditional tooling.
However, the technology still faces limitations. Industrial 3D printing can be slower than conventional manufacturing for large production volumes. Material restrictions, quality-control requirements and additional finishing processes can also affect costs.
Consequently, automakers are unlikely to replace traditional manufacturing entirely. Instead, they are integrating 3D printing into specific stages where it offers practical advantages.
The growing adoption of additive manufacturing reflects a broader shift towards flexible automotive production. For companies such as Rivian and Ford, the technology could help shorten development cycles, control expenses and accelerate innovation while making advanced manufacturing capabilities more accessible.
Cheaper Cars Are Selling Considerably Faster Than at the Beginning of the Year
Affordable cars are gaining momentum in the US automotive market, with lower-priced vehicles selling significantly faster than they did at the beginning of 2026. Rising vehicle prices, expensive financing and growing concerns about household budgets are encouraging consumers to prioritise affordability when purchasing new cars.
Vehicles priced between $20,000 and $29,999 are reportedly selling around 20% faster than they did during the first quarter of the year. Cars in the $30,000 to $39,999 range have also recorded stronger demand, with sales moving approximately 18% faster. Vehicles priced between $40,000 and $49,999 have experienced similar improvements.
The trend highlights a shift in consumer preferences as higher borrowing costs and increasing living expenses make expensive vehicle purchases less attractive.
However, finding affordable new cars remains challenging. Vehicles priced below $30,000 represent a relatively small portion of available new-car inventory. Many automakers have increasingly focused on SUVs, premium models and larger vehicles, reducing the availability of inexpensive sedans and compact cars.
The average transaction price of a new vehicle has also approached record levels, putting additional pressure on buyers who depend on automotive financing.
As a result, some consumers are exploring used vehicles, smaller models and entry-level alternatives to manage their transportation expenses.
For automakers and dealerships, the growing demand for cheaper cars presents both an opportunity and a challenge. Faster sales indicate that affordable models continue to attract customers, but limited inventory could prevent manufacturers from fully capitalising on the trend.
The changing purchasing pattern suggests that affordability is becoming an increasingly important factor in the automotive industry. Manufacturers may need to reconsider their product strategies and expand budget-friendly offerings to reach price-sensitive consumers.
As economic pressures continue to influence household spending, reasonably priced vehicles could become an increasingly important segment of the US car market.
Starbucks Sales Miss Expectations, but Its U.S. Turnaround Is Gaining Steam
Starbucks has reported a mixed financial performance, with sales falling short of Wall Street expectations even as its US business continues to show signs of recovery. The coffee chain’s latest results highlight the progress of its turnaround strategy under CEO Brian Niccol, who has been working to improve customer experience and restore growth.
The company’s performance reflects a gradual improvement in customer demand, particularly in the United States. Higher customer traffic and stronger spending have helped support comparable-store sales, suggesting that Starbucks’ efforts to attract customers back to its coffeehouses are beginning to gain traction.
The recovery comes as the company continues implementing its ‘Back to Starbucks’ strategy. The plan focuses on improving service, simplifying operations, strengthening staffing and restoring the welcoming coffeehouse atmosphere that helped establish the brand. Starbucks has also been investing in store renovations and making changes to its menu to improve the overall customer experience.
However, the company still faces several challenges. Revenue pressures, changing consumer spending habits and competition from other coffee chains continue to affect its performance. Starbucks is also managing operational restructuring and reviewing underperforming locations as part of its broader cost-control efforts.
International markets present another challenge, with performance varying across regions. The company’s business in China remains particularly important as Starbucks works to adapt its operations to changing market conditions and increasing competition from local coffee brands.
Despite the sales shortfall, the improvement in its US business provides an encouraging sign for investors. Stronger customer engagement could help the company rebuild its financial performance if the momentum continues.
Starbucks’ turnaround remains a work in progress. Its ability to sustain customer traffic, improve profitability and deliver consistent growth will determine whether the current recovery develops into a lasting business revival.
