11:47 AM EDT, 08/06/2025 (MT Newswires) -- Rivian Automotive's ( RIVN ) Q2 revenue beat was driven by higher average selling prices and growth in software and services, but earnings missed estimates due to higher operating costs, Wedbush said in a note emailed Wednesday.

Non-GAAP gross margin dropped sharply to 4.9% from 26.5% in the prior period, mainly due to lower production volumes causing $137 million in fixed cost impacts, while tariffs had a small negative effect, according to the note.

Rivian maintained delivery guidance of 40,000 to 46,000 vehicles but lowered gross profit due to regulatory and tariff headwinds, Wedbush added.

The firm maintained its outperform rating but lowered its price target on Rivian's stock to $16 from $18, pointing to continued tariff challenges facing the company over coming quarters.

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