Markets
Rivian Reveals All-Electric R2 Midsize SUV
(Phillip Faraone/Getty Images)

Rivian shares poised for best day since January as the EV maker hypes its next SUV during earnings call

Rivian shares surged more than 15% the morning following its Q3 earnings results.

Max Knoblauch

Rivian is on pace to record its second-best trading day of the year. The EV maker’s shares rose more than 15% in Wednesday morning trading following its third-quarter results, which dropped after market close on Tuesday.

The company posted a top- and bottom-line beat for Q3, including a nearly 80% sales spike year over year, and reaffirmed its guidance for full-year earnings and deliveries. That, along with an earnings call flush with hype for Rivian’s upcoming midsize SUV, the R2, appears to have investors excited.

“We’re very, very bullish on what we’re building with R2. The way we think about it as a team is we’re building the best car you can buy in this category and in this price point,” CEO RJ Scaringe said on the company’s call with investors Tuesday evening.

Scaringe pitched the R2, which will be priced in the “$45,000 to $50,000 range,” as a direct competitor to Tesla’s Model 3 and Model Y. The company reaffirmed that it anticipates R2 production costs to come in at half of the R1’s.

“At this mass market price point... there’s really been a single dominant brand with really two products. That’s of course Tesla with the Model 3 and the Model Y,” Scaringe said. “And with them taking up roughly half the market, 50% market share, it’s not a reflection of a healthy market. It’s a reflection of a very underserved market in terms of choice and options.”

Rivian, which has been working to cut costs ahead of mass production of the R2, said it will devote nearly three-quarters of its Normal, Illinois, plant to building the vehicle. Its future Georgia plant will eventually support further production of the R2 and future vehicles, which are “architected... and designed from the very beginning contemplating Europe and planning for Europe.”

Rivian said the R2 is still on track to launch in the first half of 2026. “We would steer folks to there being limited volumes in the first half of the year. And then the second half of the year, we’ll build up our ramp and see increasing production volumes,” said CFO Claire McDonough.

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Luke Kawa

Tariff losers are today’s big winners as Supreme Court seen as likely to strike down Trump’s IEEPA tariffs

US companies in the crossfire of wide-ranging tariffs imposed by the Trump administration are surging as the Supreme Court hears oral arguments on the legality of levies imposed under the International Emergency Economic Powers Act and prediction markets conclude that the ruling is not likely to go the government’s way.

Event contracts offered by Polymarket ascribe roughly 30% odds of the Supreme Court ruling in favor of the existing tariff regime, a number that got as low as 18% around 11:30 a.m. ET. Earlier this morning, that likelihood was briefly above 50%.

A basket of stocks deemed to be the biggest losers from Trump’s tariffs compiled by UBS is having one of its best days of 2025, up 3.7% as of 1:48 p.m. ET.

Rivian’s standout post-earnings rally is giving that index a big boost, but other gainers include Gap,American Eagle, Yeti, Fluence Energy, Nike, Stanley Black & Decker, RH, Deckers Outdoor, Under Armour, Wayfair, Best Buy, Williams-Sonoma, Crocs,Five Below, and Dollar Tree.

WisdomTree macro strategist Sam Rines recently warned that the Supreme Court striking down IEEPA tariffs could turn into a “be careful what you wish for” or “pyrrhic victory”-type scenario, as the Trump administration would likely a) talk more about tariffs, an issue that the stock market is keen to move on from and b) pursue alternative mechanisms to get similar levies back on.

Max Knoblauch

US airlines climb as President Trump shifts his tone about the urgency of ending the shutdown

Shares of US airlines are climbing as the government shutdown stretches into a record 36th day.

Stocks of several carriers, including Delta Air Lines, United Airlines, and American Airlines, rose significantly following an apparent change of tune from President Trump, who on Wednesday told Senate Republicans that they “must get the government back open soon, and really immediately.”

It’s a shift from the president, who’s traveled frequently during the shutdown and stuck firmly to the idea that the administration wouldn’t negotiate with Democrats before the government reopened.

Airlines had tumbled on Tuesday, following comments from Transportation Secretary Duffy that the US could close parts of its airspace amid an air traffic controller shortage that’s been escalated by the shutdown.

markets
Matt Phillips

Top Trump trade hit by Trump tariffs

In the early days of Trump 2.0, Axon, the maker of Taser, body cameras, and other gear for police and security forces, was a top Trump trade.

That is, it was one of the group of companies whose share prices soared on expectations of big changes — in this case a surge of spending on police and immigration enforcement — under the new administration.

And sales of the company’s security products, under its Connected Products division, did rise. But in the just-reported third quarter, costs rose more. And one of those rising costs was the Trump administration’s tariffs.

In its post-earnings conference call, Axon officials blamed tariffs for a large part of the earnings miss that sent the stock plummeting by roughly 20% in the after-hours session Tuesday.

“The impact from tariffs is obviously hitting the Connected Devices business overall. This was the first quarter that we had a full quarter of impact from tariffs,” Axon CFO and COO Brittany Bagley told analysts on the call. “So as we look at the year-over-year step down, that really is attributable to tariffs.”

She continued, “As long as tariffs stay in place, I view that as sort of a onetime adjustment. So now that’s baked into the gross margins.”

Clearly the market didn’t like the sound of that. But perhaps those tariffs may not stay in place.

Late in the morning, Axon sharply cuts its losses on the day — it had been down as much as 20% — as oral arguments in the Supreme Court case to determine the legality of President Trump’s tariff regime got underway. On balance, its seems the administration’s arguments were getting a chilly reception from the justices.

Axon shares extend fall as tariffs hurt the Taser maker's quarterly profit

Axon shares extend fall as tariffs hurt the Taser maker's quarterly profit

And sales of the company’s security products, under its Connected Products division, did rise. But in the just-reported third quarter, costs rose more. And one of those rising costs was the Trump administration’s tariffs.

In its post-earnings conference call, Axon officials blamed tariffs for a large part of the earnings miss that sent the stock plummeting by roughly 20% in the after-hours session Tuesday.

“The impact from tariffs is obviously hitting the Connected Devices business overall. This was the first quarter that we had a full quarter of impact from tariffs,” Axon CFO and COO Brittany Bagley told analysts on the call. “So as we look at the year-over-year step down, that really is attributable to tariffs.”

She continued, “As long as tariffs stay in place, I view that as sort of a onetime adjustment. So now that’s baked into the gross margins.”

Clearly the market didn’t like the sound of that. But perhaps those tariffs may not stay in place.

Late in the morning, Axon sharply cuts its losses on the day — it had been down as much as 20% — as oral arguments in the Supreme Court case to determine the legality of President Trump’s tariff regime got underway. On balance, its seems the administration’s arguments were getting a chilly reception from the justices.

Luke Kawa
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The stock market wants to move on from tariffs. The Supreme Court may not let that happen.

Tariffs were a solved problem for the stock market that Supreme Court oral arguments may move back to the front burner.

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