Competitor Tesla has hit its first annual gross profit for the first time. Shares jumped 25%

After a tough year for the electric car industry, electric car maker Rivian Automotive reported results for the fourth quarter of 2025 that exceeded Wall Street expectations. The company also recorded an annual gross profit for the first time in its history - an important milestone after several years of steady losses, Bloomberg notes.

After the report was published on February 12, Rivian's shares rose by 16% during the trades - this is the most significant one-day growth since November 5, the agency calculated. At the trades on February 13, the company's securities continued to grow and traded in the plus by more than 25% against the level of the previous closing. Since the beginning of the year, Rivian stock quotes are down 10%.

- Rivian reported an adjusted loss of $0.54 per share in the fourth quarter of 2025, which was better than the forecast of Wall Street analysts, who expected a deficit of $0.69, reports the agency. The company managed to show this result despite the generally gloomy situation in the U.S. electric vehicle industry: sales in the industry have been declining for several months in a row, after the abolition of tax incentives in the U.S. in September 2025, Bloomberg notes.

- Rivian's quarterly revenue, meanwhile, fell 25% year-over-year to $1.29 billion, slightly above analysts' forecasts.

- The company's gross profit (the difference between revenue and cost of goods sold) for the quarter reached $120 million, which allowed the company to show a positive result on this indicator for the end of 2025. This is the first annual gross profit in Rivian's history, Bloomberg points out. In 2024 by this indicator, the company recorded a loss of $1.2 billion.

Rivian attributed the latest results to the software and services division of the business: growth was mainly driven "by increased vehicle electric architecture and software development services as part of a joint venture with Volkswagen Group," the company said in a release. That more than offset continuing losses in the automotive business, Bloomberg notes.

- In addition, Rivian said it is preparing to sell its R2 midsize SUV, a more affordable electric vehicle that the company expects will attract a wider range of buyers. With that in mind, Rivian said it expects to deliver between 62,000 and 67,000 vehicles to market this year, compared with about 63,000 that analysts are predicting.

Rivian's report for the fourth quarter of 2025 was a rare positive result amid a generally gloomy situation in the U.S. electric car industry, Bloomberg writes. Sales of electric cars in America have been in a prolonged slump since late September 2025, when the $7500 tax credit for buying an electric vehicle in the U.S. expired. This has increased doubts about the real demand for battery-powered cars without such subsidies, the agency notes.

Rivian went public in 2021. The company was perceived as a potential competitor to Tesla- it was ahead of the then-existing automakers in launching full-size electric pickup trucks and SUVs, Bloomberg pointed out.

Deutsche Bank raised its recommendation on Rivian shares from "hold" to "buy" after the company published its latest quarterly reports, CNBC writes. "Overall, we consider the risk/return ratio [on Rivian's securities] attractive and raise the rating of the stock, increasing the target price to $23 (against the previous $16)," the bank said. This target implies the stock's growth of 64% relative to the previous closing level.

Of the 28 analysts covering the company's stock, the majority - 12 - recommend holding it in a portfolio. Nine advise buying, and another seven advise selling, according to MarketWatch.

This article was AI-translated and verified by a human editor