Rivian Defies EV Market Slump with Surprise Profits

High-end electric vehicle maker Rivian reports strong earnings, signaling a potential turnaround amid industry challenges.

Published on Feb. 17, 2026

Got story updates? Submit your updates here. ›

Rivian, the Irvine-based electric vehicle manufacturer, has shocked the market with its strong earnings results, reporting gross profits of $144 million for 2025 compared to a net loss of $1.2 billion the previous year. The company credited its improved performance to strong software and services, higher average selling prices, and reduced costs per vehicle. Despite the broader EV market struggling with the end of government subsidies and cooling consumer interest, Rivian appears to have found a path to profitability.

Why it matters

Rivian's turnaround is significant as the EV industry has faced headwinds, including the expiration of federal tax credits and pressure to offer lower-priced models. Rivian's success could signal its ability to navigate these challenges and potentially set an example for other EV makers struggling to achieve profitability.

The details

Rivian delivered 42,247 vehicles in 2025 and produced 42,284 vehicles, an improvement from the previous year. The company still reported a $432 million net loss for the year, but this was an improvement from 2024. Rivian is banking on the success of its upcoming lower-priced R2 model, which is expected to start around $45,000 with deliveries slated to begin this spring. The company's least expensive model currently, the R1T pickup truck, starts at $72,990.

  • Rivian reported its strong earnings results on February 16, 2026.
  • The federal $7,500 tax credit for new electric vehicles expired in September of the previous year.
  • Rivian laid off roughly 600 employees, more than 4% of its workforce, in October 2025.

The players

Rivian

An Irvine-based high-end electric vehicle manufacturer that has found a path to profitability amid industry challenges.

RJ Scaringe

The founder and chief executive of Rivian, who expressed excitement about the early strong reviews of the company's upcoming R2 SUV model.

Dan Ives

An analyst with Wedbush Securities who described Rivian's turnaround as "a turnaround for the ages" after years of struggling with losses.

Got photos? Submit your photos here. ›

What they’re saying

“It's a turnaround for the ages. The past few years have been very frustrating for investors.”

— Dan Ives, Analyst, Wedbush Securities (The Los Angeles Times)

“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.”

— RJ Scaringe, Founder and Chief Executive, Rivian (The Los Angeles Times)

What’s next

Rivian's success with the upcoming R2 model will be pivotal for the company's future, as it looks to offer a more affordable electric vehicle option to consumers.

The takeaway

Rivian's ability to turn a profit in a challenging EV market demonstrates its potential to navigate industry headwinds and set an example for other manufacturers struggling to achieve profitability. The company's focus on lower-priced models could help expand access to electric vehicles for more consumers.