Rivian Posts Biggest Gain Since IPO After Q4 2025 Earnings

Core Viewpoint - Rivian Automotive experienced a significant stock price increase of nearly 27% following its latest earnings report, marking one of its best performance days on record, although the stock remains down over 75% from its IPO price of $78 [1][2]. Financial Performance - In Q4 2025, Rivian generated revenue of $1.29 billion, a 26% decrease year-over-year, but slightly exceeded estimates of $1.27 billion [3]. - The adjusted loss per share was 54 cents, which was a 15% increase year-over-year but better than the expected loss of 68 cents [3]. Gross Margin Analysis - Rivian achieved a gross margin of 9%, only slightly down from 10% in the same period of 2024, despite a 31% year-over-year drop in vehicle deliveries and a 14% decline in vehicle production [4][5]. - The resilience in gross margin was supported by an increase in the average selling price (ASP) per vehicle by $5,500 and a reduction in automotive costs of goods sold (COGS) by approximately $9,500 per unit throughout 2025 [6]. Future Outlook - Rivian anticipates a rise in deliveries by over 50% in 2026 with the introduction of its R2 vehicle, although there are ongoing concerns regarding the overall market and competition [7].