Rivian Automotive, Inc. (NASDAQ:RIVN) and Ferrari N.V. (NYSE:RACE) both beat estimates last week but for opposite reasons. Rivian narrowed its losses and raised its delivery forecast as its cheaper R2 SUV finally reached customers. Ferrari raised guidance too, even though it shipped fewer cars than a year earlier, proving it can grow profit through pricing alone.
Why Two Automakers Both Beat, in Completely Different Ways
Rivian delivered 12,194 vehicles, up from 10,365, with revenue up 27% as the roughly $58,000 R2 finally reached buyers after years of Rivian selling only six-figure trucks and SUVs. Ferrari N.V. (NYSE:RACE) ran the opposite direction and delivered 128 fewer cars than a year earlier, with declines in the Americas, China, and the rest of Asia. Still, it grew revenue 8.4% and lifted its margin to 31.2%, because buyers kept paying more for personalization and its priciest models.
This makes you wonder: is Rivian’s path to profit through selling more, cheaper vehicles the more durable strategy, or does Ferrari’s pricing power prove scale is overrated?
Rivian’s Bull and Bear Case
Rivian Automotive, Inc. (NASDAQ:RIVN)’s net loss narrowed to $837 million from $1.15 billion a year earlier, and gross profit grew to a $179 million gain from a $206 million loss. Revenue rose 27% to $1.66 billion, beating the $1.51 billion expected. Software and services sales jumped 37% to $515 million, including $308 million from its Volkswagen joint venture. The company raised delivery guidance to 65,000 to 70,000 vehicles, up from 62,000 to 67,000. It also cut planned 2026 capital spending by $250 million. CEO RJ Scaringe said R2 order conversion is running “meaningfully above” internal projections.
However, Rivian still lost $837 million in one quarter. The broader U.S. EV market shrank nearly 30% year over year in June, as per Motor Intelligence, after federal tax credits expired. Rivian’s automotive business alone, excluding software, still posted a $36 million loss even as software and services carried a $215 million profit.
Ferrari’s Bull and Bear Case
Ferrari N.V. (NYSE:RACE) raised full-year revenue guidance to about €7.6 billion and adjusted operating profit to at least €2.26 billion, both up from prior targets. Second quarter operating profit rose to €605 million, a 31.2% margin, on stronger personalization spending and deliveries of the pricier F80 model. Its order book is full through 2027, and RBC’s Tom Narayan noted Ferrari “rarely raises its guide in Q2,” calling the timing “a positive indicator.”
Still, Ferrari shipped 128 fewer cars than a year earlier, missing FactSet’s delivery estimate. Shipments fell 21% in the Americas, 32% in Greater China, and 7.4% across the rest of Asia-Pacific, offset only by a 13% gain in Europe. Its first electric car, the €550,000 Luce, got a rocky debut, sending shares down more than 8% in a single day in May, even though Ferrari says it has since hit its 2026 sales target for the car.
Insider Monkey’s Hedge Fund Data
Insider Monkey’s hedge fund database shows Rivian Automotive, Inc. (NASDAQ:RIVN) had 45 hedge fund holders as of Q1 2026, unchanged from the quarter before. Ferrari had 43 holders, down from 44. Hedge funds were bullish on Rivian. Among broader auto peers, Ford had 50 holders, down from 52, and General Motors had 77, down from 81. EV rival Lucid had just 23. Traditional automakers still draw more hedge fund interest than either.
Conclusion
Rivian and Ferrari represent two opposite bets on where car profits come from, one selling far more vehicles at a lower price, the other selling fewer at a higher price. Hedge funds are almost evenly split but still favor Rivian over Ferrari. Last week didn’t settle the argument: Rivian Automotive, Inc. (NASDAQ:RIVN) proved it can grow with the mass market, while Ferrari N.V. (NYSE:RACE) proved luxury pricing can outrun even a sales decline.
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Disclosure: None. This article is originally published at Insider Monkey.
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