Rivian, NIO Leap On View They Can Shake Off EV Downturn

Core Insights - Shares of electric vehicle makers NIO and Rivian Automotive surged as both companies showed signs of transitioning from startups to established automakers [1] NIO Performance - NIO reported its first-ever quarterly profit of 282.7 million yuan (approximately $40.4 million) for the December quarter, a significant turnaround from a loss of 7.11 billion yuan (around $974 million) a year earlier [1] - Quarterly revenue increased by 81% year-over-year to $4.52 billion, with margins rising five percentage points to 18.1% [1] - NIO's deliveries rose 71.7% year-over-year to 124,807 vehicles, with expectations of delivering between 80,000 and 83,000 vehicles in the first quarter [1] Rivian Developments - Rivian's stock increased by around 12% as investors anticipated the launch of its new electric SUV model, the R2, priced at approximately $45,000, significantly lower than the R1's price of around $77,000 [1] - Rivian's shares have dropped nearly 80% since its IPO in November 2021, but recent earnings reports have hinted at a potential financial turnaround [1] - The company reported a reduction in per-vehicle cost of goods sold by $7,200, which is a crucial step in improving margins [1] Analyst Perspectives - Morgan Stanley analyst Andrew Percoco expressed concerns about the timing of the R2 launch amid an expected slowdown in EV demand, maintaining an underweight rating on Rivian [1] - Conversely, BNP Paribas analyst James Picariello views the R2 launch as a pivotal moment for Rivian, projecting 2026 as a critical year for the company's transformation [1]