Rivian Stock Rallies 26% on Earnings and R2 SUV Launch Plans
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Rivian's stock rose 26% to $17.64 after reporting Q4 revenue of $1.29 billion, exceeding expectations. The company forecasts 62,000-67,000 vehicle deliveries in 2026, driven by the introduction of the R2 SUV at a lower starting price. Despite continued losses, Rivian achieved its first positive gross profit year in 2025, signaling operational improvements.
Rivian stock surged 26% in premarket trading to $17.64 after closing at $14.00, as investors reacted to stronger-than-expected fourth-quarter results and ambitious 2026 guidance. The electric vehicle maker reported narrower losses and revenue that topped Wall Street forecasts, fueling sharp momentum in early trading.
Rivian Automotive posted fourth-quarter revenue of $1.29 billion, exceeding analyst expectations of about $1.26 billion to $1.27 billion. The company recorded an adjusted loss per share of $0.70, slightly better than projections that ranged from $0.68 to $0.71 per share.
The earnings surprise, though modest, signaled improved cost control during a pivotal phase for the company.
Profit Milestone Marks Turning Point
The fourth quarter capped a milestone year. Rivian achieved its first full year of positive gross profit in 2025, totaling $144 million. The company generated $120 million in gross profit during the fourth quarter alone, reflecting a 9% margin. Investors closely track gross profit because it highlights performance before operating expenses and financing costs.
Software and services revenue from Rivian’s joint venture with Volkswagen supported margins and helped offset losses in its automotive operations. Rivian still reported an annual net loss of $3.6 billion, though that marked an improvement from the $4.75 billion loss recorded in 2024. Fourth-quarter net loss reached $804 million, partly influenced by lower revenue from regulatory credit sales following federal policy changes.
Rivian ended the quarter with $6.59 billion in total liquidity, including nearly $6.1 billion in cash, cash equivalents, and short-term investments. That liquidity provides flexibility as the company prepares for its next major product cycle.
R2 SUV Drives 2026 Outlook
Investors focused heavily on forward guidance. Rivian expects to deliver between 62,000 and 67,000 vehicles in 2026, representing growth of 47% to 59% compared with 2025. The company plans to begin customer deliveries of its lower-priced R2 midsize SUV in the second quarter of 2026.
Chief Executive RJ Scaringe described the R2 as a critical inflection point. Unlike the R1T pickup and R1S SUV, which start in the $70,000 range, the R2 targets a broader segment of the electric vehicle market with an expected price near $45,000. Rivian aims to cut build material costs in half and reduce production complexity with the new platform.
The company will initially run one production shift for the R2 at its Normal, Illinois plant and add a second shift later in the year. Rivian plans to release more detailed information about pricing and configurations on March 12.
Losses Continue Amid Expansion
Despite delivery growth targets, Rivian expects adjusted pre-tax losses of $1.8 billion to $2.1 billion in 2026. The company also plans capital expenditures between $1.95 billion and $2.05 billion as it scales production and prepares for the R2 rollout. Last year, Rivian recorded nearly $2.1 billion in adjusted pre-tax losses and $1.7 billion in capital spending.
Management characterized 2025 as a foundational year and framed 2026 as a turning point. The guidance suggests confidence in production ramp-up, yet the company continues to operate at a loss while investing heavily in expansion.
As of premarket trading, Rivian’s sharp stock move reflects investor reaction to earnings momentum and delivery projections. The coming quarters will test whether production targets and cost reductions align with expectations in a competitive and evolving EV landscape.
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Rivian Stock Rallies 26% on Earnings and R2 SUV Launch Plans
Share:
Rivian's stock rose 26% to $17.64 after reporting Q4 revenue of $1.29 billion, exceeding expectations. The company forecasts 62,000-67,000 vehicle deliveries in 2026, driven by the introduction of the R2 SUV at a lower starting price. Despite continued losses, Rivian achieved its first positive gross profit year in 2025, signaling operational improvements.
Rivian stock surged 26% in premarket trading to $17.64 after closing at $14.00, as investors reacted to stronger-than-expected fourth-quarter results and ambitious 2026 guidance. The electric vehicle maker reported narrower losses and revenue that topped Wall Street forecasts, fueling sharp momentum in early trading.
Rivian Automotive posted fourth-quarter revenue of $1.29 billion, exceeding analyst expectations of about $1.26 billion to $1.27 billion. The company recorded an adjusted loss per share of $0.70, slightly better than projections that ranged from $0.68 to $0.71 per share.
The earnings surprise, though modest, signaled improved cost control during a pivotal phase for the company.
Profit Milestone Marks Turning Point
The fourth quarter capped a milestone year. Rivian achieved its first full year of positive gross profit in 2025, totaling $144 million. The company generated $120 million in gross profit during the fourth quarter alone, reflecting a 9% margin. Investors closely track gross profit because it highlights performance before operating expenses and financing costs.
Software and services revenue from Rivian’s joint venture with Volkswagen supported margins and helped offset losses in its automotive operations. Rivian still reported an annual net loss of $3.6 billion, though that marked an improvement from the $4.75 billion loss recorded in 2024. Fourth-quarter net loss reached $804 million, partly influenced by lower revenue from regulatory credit sales following federal policy changes.
Rivian ended the quarter with $6.59 billion in total liquidity, including nearly $6.1 billion in cash, cash equivalents, and short-term investments. That liquidity provides flexibility as the company prepares for its next major product cycle.
R2 SUV Drives 2026 Outlook
Investors focused heavily on forward guidance. Rivian expects to deliver between 62,000 and 67,000 vehicles in 2026, representing growth of 47% to 59% compared with 2025. The company plans to begin customer deliveries of its lower-priced R2 midsize SUV in the second quarter of 2026.
Chief Executive RJ Scaringe described the R2 as a critical inflection point. Unlike the R1T pickup and R1S SUV, which start in the $70,000 range, the R2 targets a broader segment of the electric vehicle market with an expected price near $45,000. Rivian aims to cut build material costs in half and reduce production complexity with the new platform.
The company will initially run one production shift for the R2 at its Normal, Illinois plant and add a second shift later in the year. Rivian plans to release more detailed information about pricing and configurations on March 12.
Losses Continue Amid Expansion
Despite delivery growth targets, Rivian expects adjusted pre-tax losses of $1.8 billion to $2.1 billion in 2026. The company also plans capital expenditures between $1.95 billion and $2.05 billion as it scales production and prepares for the R2 rollout. Last year, Rivian recorded nearly $2.1 billion in adjusted pre-tax losses and $1.7 billion in capital spending.
Management characterized 2025 as a foundational year and framed 2026 as a turning point. The guidance suggests confidence in production ramp-up, yet the company continues to operate at a loss while investing heavily in expansion.
As of premarket trading, Rivian’s sharp stock move reflects investor reaction to earnings momentum and delivery projections. The coming quarters will test whether production targets and cost reductions align with expectations in a competitive and evolving EV landscape.
Read More
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