Electric vehicle maker Rivian Automotive shocked investors with its first-ever annual gross profit of $144 million for 2025, sparking a 27% spike in shares during after-hours trading as the company demonstrated progress toward profitability amid a challenging EV market.
The Irvine, California-based company reported full-year 2025 revenue of $5.387 billion, an 8% increase from $4.97 billion in 2024, driven by higher average selling prices, cost reductions per vehicle, and growth in software and services. This marked a dramatic turnaround from a $1.2 billion gross loss in 2024, with Q4 2025 alone contributing $120 million in gross profit. Rivian produced 42,284 vehicles and delivered 42,247 in 2025, reflecting steady output despite market headwinds.
Q4 revenue came in at $1.286 billion, down 26% year-over-year due to the loss of regulatory emissions credits, the end of federal EV tax credits, and lower average selling prices, but the gross profit swing provided a bright spot. The company still posted a $432 million net loss for automotive profits in 2025, an improvement from the prior year, and a full-year net loss of $3.63 billion.
For 2026, Rivian forecasts deliveries of up to 67,000 vehicles, signaling growth, with the R2 model launch on track for Q2. Analysts reacted positively, with some pointing to long-term upside despite mixed near-term signals, contributing to the stock’s surge to around $17.73.
“On Thursday, Rivian reported gross profits for 2025 of $144 million, compared with a net loss in 2024 of $1.2 billion,” noted the Los Angeles Times, crediting the turnaround to “strong software and services performance, higher average selling prices, and reductions in cost per vehicle.”
This earnings beat stands out in a sluggish EV sector, where rivals like Tesla and Ford have grappled with subsidy cuts and softening demand, but Rivian’s focus on cost efficiencies and software revenue offers a blueprint for survival.
As EV adoption accelerates globally, Rivian’s profitability milestone could bolster investor confidence, but scaling deliveries and navigating economic pressures will be key to sustaining the momentum.
