Rivian Surprises with Strong Earnings as EV Market Struggles

The California automaker competes with Tesla and others selling all-electric vehicles at a premium price.

Published on Feb. 17, 2026

Got story updates? Submit your updates here. ›

Rivian Automotive Inc. reported stronger-than-expected earnings results, proving itself an outlier in an electric vehicle market that has been struggling with the end of government subsidies and cooling consumer excitement. Shares in the Irvine, Calif.-based high-end EV manufacturer skyrocketed 27% after it announced a gross profit of $144 million for 2025, compared to a net loss of $1.2 billion in 2024.

Why it matters

Rivian's turnaround is significant as the broader EV market has faced challenges, with Tesla reporting a 46% decline in net income for 2025. Rivian's success could indicate a path to profitability for premium EV makers, even as consumers demand more affordable options.

The details

Rivian credited its swing to profit to 'strong software and services performance, higher average selling prices, and reductions in cost per vehicle.' The company delivered 42,247 vehicles in 2025, down from 51,579 in 2024, but still reported a $432 million net loss for the year. Rivian expects to deliver between 62,000 and 67,000 vehicles this year and is banking on the success of its lower-priced R2 model, which is expected to start around $45,000 with deliveries slated to begin this spring.

  • Rivian reported gross profit for 2025 of $144 million, compared with a net loss in 2024 of $1.2 billion.
  • For the full year, Rivian delivered 42,247 vehicles, down from 51,579 in 2024.
  • Rivian expects to deliver between 62,000 and 67,000 vehicles this year.
  • The R2 model is expected to start around $45,000 with deliveries slated to begin this spring.

The players

Rivian Automotive Inc.

A California-based high-end EV manufacturer that competes with Tesla and others selling all-electric vehicles at a premium price.

Tesla Inc.

An Austin-based EV manufacturer that reported a 46% decline in net income for 2025.

Amazon.com Inc.

An e-commerce giant that has more than 30,000 custom-built Rivian Electric Delivery Vans operating in the U.S. and parts of Europe.

RJ Scaringe

The founder and CEO of Rivian.

Dan Ives

An analyst with Wedbush Securities.

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 (statesman.com)

“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 CEO, Rivian (statesman.com)

What’s next

The popularity of the R2 model will be pivotal for Rivian's success, as it looks to position the lower-priced vehicle as a key driver of its future growth.

The takeaway

Rivian's ability to turn a profit in a challenging EV market demonstrates the potential for premium EV makers to find a path to profitability, even as consumers demand more affordable options. The company's focus on cost reductions and software/services performance could serve as a model for other EV startups struggling to gain traction.