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Rivian's R2 SUV has become the company's best-selling vehicle and won Top Gear's SUV of the Year award, with strong reviews from MotorTrend comparing favorably against Tesla Model Y and Ford Mustang Mach-E. Q3 deliveries reached a record 19,248 vehicles with 46% year-over-year growth driven largely by R2. However, the automotive business still posted an $80 million gross loss, and profitability remains a key challenge for long-term investors.
Ford is shifting its business model to focus on high-margin software subscriptions and connected services to supplement low-margin vehicle sales. The company reported 1.7 million active paid subscriptions (up 40% YoY) and record quarterly software-services revenue, despite a 6.6% decline in Q3 vehicle sales. This strategy mirrors General Motors' successful OnStar business, which generated over $800 million in Q3 revenue with $6.8 billion in deferred revenue, positioning both automakers to gradually transform from low-margin manufacturers into higher-margin service providers.
Ford, as part of the Alliance for Automotive Innovation, has filed a legal brief supporting the Trump administration's revised vehicle fuel economy standards in response to a lawsuit from several states.
Rivian Automotive surged 8.47% on November 2, 2026, following a UBS upgrade to Buy rating. UBS cited solid early R2 demand and a path to positive automotive gross margin as reasons for the upgrade, calling the recent selloff overdone. The company's Q3 results showed 38% year-over-year revenue growth to $2.2 billion, with the R2 becoming its best-selling vehicle by volume. A $1 billion term loan from the Volkswagen joint venture also provided additional liquidity support.
Ford is scaling its energy business with plans for 20 gigawatt-hours of annual battery storage capacity by the end of 2027.