Rivian Shares Surge 20% After Revenue Beat and Strong Software Growth

Core Viewpoint - Rivian Automotive Inc. reported fourth-quarter revenue that surpassed analyst expectations, leading to a significant increase in share price despite a notable decline in automotive sales year-over-year [1] Financial Performance - The company recorded fourth-quarter revenue of $1.29 billion, slightly above the consensus estimate of $1.27 billion, but down from $1.73 billion in the same quarter last year [2] - Rivian reported an adjusted loss of $0.54 per share, better than the expected loss of $0.68 per share [2] Automotive Sales - Automotive revenue fell 45% year-over-year to $839 million, attributed to a $270 million decrease in regulatory credit sales, lower vehicle deliveries due to the expiration of tax credits, and a reduced average selling price from a higher mix of commercial van deliveries [3] - The company produced 10,974 vehicles and delivered 9,745 vehicles during the quarter at its Normal, Illinois manufacturing facility [3] Future Guidance - For the full year, Rivian guided for vehicle deliveries between 62,000 and 67,000 units, with capital expenditures projected between $1.95 billion and $2.05 billion [4] - The development of Rivian's R2 vehicle is on schedule, with initial customer deliveries expected in the second quarter of 2026 [4]