Stock Market Today, July 31: Rivian Beats Q2 Revenue Estimate as Concerns of Rising Costs Weigh on Stock

Electric pickup, SUV, and commercial delivery van maker Rivian Automotive (NASDAQ:RIVN) closed at $15.22, down 9.57%. Friday's decline followed its Q2 revenue beat, but investors focused on profitability concerns and electric vehicle (EV) market pressure.
Trading volume reached 53.9 million shares, coming in about 52% above its three-month average of 35.3 million shares. Rivian Automotive IPO'd in 2021 and has fallen 85% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) closed at 7,490, up 0.70%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) ended at 25,374, up 1.00%. Among automobile manufacturers specializing in EVs, Tesla (NASDAQ:TSLA) closed at $311.20, up 0.76%, while Lucid Group (NASDAQ:LCID) finished at $7.38, down 9.11%, underscoring mixed EV sentiment during Friday's session.

What this means for investors

Friday's decline followed Rivian's announcement of Q2 revenue totaling $1.66 billion, surpassing the estimated $1.51 billion. However, concerns about costs continued to weigh heavily on the stock.

Earlier this month, Rivian increased its 2026 vehicle delivery guidance from 62,000 to 67,000 vehicles to 65,000 to 70,000 vehicles. That came just as the company began production of its next-generation R2 SUV. External deliveries of the R2 have now begun, with CEO R.J. Scaringe noting strong interest, evidenced by a record number of demo drives in the quarter.

Rivian stock was under pressure, though, as investors fear rising component costs and remain uncertain that there will be sufficient demand even for the lower-priced R2.

The stock will likely fluctuate until investors get a clear view of R2 demand and whether it can lead the company to profitability.

Howard Smith has positions in Lucid Group, Rivian Automotive, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.