EV maker Rivian (RIVN) is surging in today’s trading following its fourth-quarter earnings results. Interestingly, Automotive revenue and gross profit were still under pressure, mainly because deliveries declined following changes to U.S. EV incentives and because average selling prices were lower. However, the bigger picture showed progress. In 2025, Rivian generated about $144 million in gross profit compared to a $1.2 billion loss in 2024. This sharp improvement was driven largely by fast growth in its higher-margin Software and Services segment, along with better profitability on each vehicle sold.
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Looking ahead to 2026, the company expects deliveries to increase to a range of 62,000 to 67,000 vehicles. Management described 2026 as a year that will be focused on investing and scaling production as it prepares to ramp up its R2 and midsize platforms. As a result, analyst reactions were mixed but leaned slightly optimistic. For instance, Wedbush kept its Buy rating and $25 price target, with five-star analyst Dan Ives saying he remains confident in Rivian’s long-term strategy as it optimizes R1 production and prepares for its next growth phase.
Separately, Needham called 2026 a transitional year. It noted that while higher spending on autonomy research and new launches is weighing on near-term results, improving vehicle economics and strong software growth tied to the Volkswagen (VWAGY) joint venture support future margin expansion. On the other hand, Mizuho, led by five-star-rated Vijay Rakesh, maintained its Sell rating by arguing that the broader EV sector continues to face significant challenges.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on nine Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RIVN price target of $18.14 per share implies 6.6% upside potential.
