Rivian shocked the market with strong earnings results, proving itself an outlier in the electric vehicle market, which has been struggling with the end of government subsidies and cooling consumer excitement.
The shares of the Irvine-based high-end EV manufacturer skyrocketed 27% on Friday after it announced stronger-than-expected results, indicating that, after years of struggling with losses, it may have at last found a path to profitability.
On Thursday, Rivian reported gross profits for 2025 of $144 million, compared with a net loss in 2024 of $1.2 billion.
In its earnings release, Rivian credited the swing to gross profit to “strong software and services performance, higher average selling prices, and reductions in cost per vehicle.”
Last October, it laid off roughly 600 employees, more than 4% of its workforce.
Rivian delivered 42,247 vehicles in 2025 and produced 42,284 vehicles. The company still reported a $432-million net loss for the year for automotive profits, an improvement from 2024.
“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 founded in Florida in 2009 and made its initial public offering in 2021. It competes with Tesla and other automakers selling all-electric vehicles for a premium price.
Following the expiration in September of the $7,500 federal tax credit for new electric vehicles, companies have been under pressure to offer lower sticker prices. Last year, Tesla launched new variations of the Model 3 and Model Y that start at roughly $5,000 less than the more expensive versions of the same models.
Investors said the discounts weren’t enough and the vehicles, still priced above $35,000, remained out of reach for many consumers. There are only a handful of EVs on the market available for under $35,000.
Rivian is banking its future on the success of its own lower-priced R2 model, which is expected to start around $45,000 with deliveries slated to begin this spring.
The least expensive Rivian model available now, the R1T pickup truck, starts at $72,990.
The company has received positive early feedback on its R2 SUV, according to the earnings release.
“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.
Ives said the popularity of the R2 will be pivotal for Rivian, which laid off nearly 1,000 workers in 2025.
“It’s going to be the epicenter of their success or challenges,” Ives said.
Rivian shares have risen more than 33% over the last year but are down 8% since the start of 2026.
“They’re back on their flight path with still some turbulence in the air,” Ives said.
