Rivian $RIVN ( ▲ 26.64% ) delivered its strongest stock market performance since going public, soaring more than 25% in a single day despite a brutal environment for electric vehicle makers. The rally came after the company reported stronger-than-expected results and highlighted a fast-growing software and services division that is helping offset losses from vehicle sales.
The surge stands out in an industry struggling with collapsing demand after the expiration of federal EV tax credits. Sales across the sector have slumped sharply, and major automakers are scaling back electrification plans.
Cars burn cash, software prints profit
Rivian still loses money on each vehicle it sells, roughly $10,200 per unit, underscoring how difficult it is for EV startups to reach profitability. But its software and services segment is emerging as a critical lifeline.
That division generated about $576 million in gross profit last year, helping push Rivian to a positive overall gross profit of $144 million. The improvement represents a massive turnaround from the previous year and suggests the company may have a path to sustainable economics beyond hardware.
Industry retreat makes Rivian stand out
While Rivian is showing progress, legacy automakers are pulling back hard. Ford booked nearly $20 billion in charges tied to EV strategy changes, and Stellantis announced roughly $26 billion in special charges as it reassesses its electrification push.
Against that backdrop, Rivian’s guidance for 62,000 to 67,000 vehicle deliveries in 2026 gave investors reason to believe the company can grow even as competitors hit the brakes.
Still far from its former glory
Despite the historic rally, Rivian remains a shadow of its former market peak. Even after the surge, its valuation is only about one-seventh of where it stood shortly after its 2021 IPO, when enthusiasm for EV startups was at fever pitch.
The latest jump suggests investors are warming to a new narrative. Rivian may not win by selling cars alone. Its future could hinge on becoming as much a software company as an automaker.