Rivian's stronger-than-expected 2025 earnings sparks 27% stock surge

Rivian stunned the market with its shares soaring 27% on Friday following stronger-than-expected 2025 earnings. The shares rose sharply from their previous close of $14.00 to $17.73 on Friday. 

Google Finance data showed the stock traded in a day range of $16.40 to $18.48, edging higher to $17.76 in after-hours trading.

Rivian reports 2025 financial and production performance

Rivian announced on Thursday that its 2025 gross profit was $144 million, compared with a net loss of $1.2 billion in 2024.

According to the release, Rivian produced 42,284 vehicles and delivered 42,247 to clients by the end of 2025. Despite this, the company’s automotive profitability for the year showed a $432 million net loss, which was better than in 2024.

According to the company’s earnings report, the company delivered 9,745 and produced 10,974 vehicles in quarter 4 of last year alone, but its consolidated revenues for the quarter dropped to $1,286 million from $1,734 million in the same period in 2024. The company revealed that automotive revenues fell 45% year over year to $839 million due to a $270 million decline in regulatory credit sales, fewer vehicle deliveries after tax incentives expired, and a greater mix of lower-priced EDV models. 

The company’s release disclosed that consolidated full-year revenues came to $5,387 million, up 8% from 2024. Software and services had a 222% increase in revenue to $1,557 million, while automotive revenues fell 15% to $3,830 million. 

The company also laid off roughly 600 employees in October of last year, more than 4% of its workforce.

“It’s a turnaround for the ages,” said Dan Ives, an analyst with Wedbush Securities. “The past few years have been very frustrating for investors.”

Rivian was established in Florida in 2009. It went public in 2021. Its competitors include Tesla and other automakers that charge higher prices for all-electric cars.

The cheapest Rivian model currently on the market, the R1T pickup truck, starts at $72,990.

Rivian advances autonomous driving and AI ecosystem

Rivian is banking its future on the success of its own lower-priced R2 model, which is anticipated to cost about $45,000. According to the earnings release, the company has gotten a good early response to its R2 SUV.

“It’s incredibly exciting to see the early strong reviews of the R2 pre-production builds, and we can’t wait to get them to our customers next quarter,” Rivian founder and chief executive, RJ Scaringe, said in a statement. 

Scaringe revealed that Rivian’s R2 launch is still proceeding according to plan, with the first client deliveries expected in the second quarter of 2026.  The company completed its first R2 manufacturing validation builds in mid-January. 

Scaringe stated that the launch variant will be a well-equipped Dual-Motor AWD vehicle, with additional product and line-up details scheduled for release on March 12.

On December 11 of last year, the company hosted its first Autonomy and AI Day. It stated that it is advancing its autonomy and AI capabilities as part of its broader push to integrate cutting-edge technology across its vehicle lineup.

The company showcased innovations from its vertically integrated hardware, software, and autonomy teams, introducing its third-generation autonomy platform and its first in-house AI chip, the RAP1 Autonomy Processor, which supports multi-modal computing in the real world.

On the same day, Rivian also introduced Universal Hands-Free (UHF), expanding assisted-driving capabilities to over 3.5 million miles across the U.S. and Canada for R1 vehicles, with customer utilization doubling in the weeks following the launch.

The company said it expects that RAP1, in conjunction with R2’s advanced sensor and computing architecture, will deliver a significant leap in efficiency and enable advanced autonomous features such as “eyes-off” and personal-level 4 capabilities.

Rivian said it is further strengthening its AI ecosystem through Rivian Unified Intelligence, a system designed to understand products and operations as a single continuous framework.

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