Rivian Automotive (RIVN) shot up in early trading on Friday after its fourth-quarter earnings showed a mixed near-term picture but a constructive long-term setup. The company highlighted that 2025 marked roughly $144M of gross profit in comparison to about a $1.2B loss in 2024, driven largely by rapid growth in higher-margin software and services alongside better vehicle unit economics. However, automotive revenue and gross profit remained under pressure, reflecting reduced deliveries tied to U.S. policy changes around EV incentives and lower average selling prices,
For 2026, Rivian guided to a sizable step-up in deliveries to a range of 62K to 67K and framed the year as an investment and ramp period that is intended to set up higher volume, as well as more software profitability in subsequent years.
Wedbush Securities kept an Outperform rating and $25 price target on Rivian (RIVN) after taking in the report. “We continue to remain confident in the long-term vision that RIVN is amid a massive transformation while looking to optimize its R1 production and further preparing to ramp its R2 and midsize platform supply chains starting in FY26,” updated analyst Dan Ives.
Needham sees 2026 as a transitional year for the electric vehicle maker. “While near-term financials remain pressured by higher autonomy R&D and launch-related costs, the improving unit economics, strong software & services growth tied to the Volkswagen JV, and positive early R2 reviews support confidence in the longer-term margin trajectory,” highlighted analyst Chris Pierce.
Meanwhile, Mizuho Securities kept its bearish stance on Rivian (RIVN) by reiterating an Underweight rating. The firm thinks the EV sector as a whole remains in a challenging position.
Shares of Rivian Automotive (RIVN) were up 18.4% at 9:59 a.m. to $16.67, which is in the middle of the 52-week range of $10.36 to $22.69.