Rivian's stock skyrocketed 27% Friday after the electric car maker "shocked the market with strong earnings results," reports the Los Angeles Times, "proving itself an outlier in the EV market, which has been struggling with the end of government subsidies and cooling consumer excitement."
They add that Rivian's strong earnings results suggest that "after years of struggling with losses, it may have at last found a path to profitability."
On Thursday, Rivian reported gross profits for 2025 of $144 million, compared with a net loss in 2024 of $1.2 billion... Rivian credited the swing to gross profit to "strong software and services performance, higher average selling prices, and reductions in cost per vehicle..." Rivian delivered 42,247 vehicles in 2025 and produced 42,284 vehicles. The company still reported a $432-million net loss for the year for automotive profits, an improvement from 2024.
But Rivian's software and services revenue grew more than threefold to $1.55 billion for the year, reports TechCrunch. "And the joint venture with Volkswagen Group was behind most of that growth, according to Rivian."
VW and Rivian formed a technology joint venture in 2024 that is worth up to $5.8 billion. The joint venture is milestone-based and in 2025 Rivian hit the mark, which meant a $1 billion payout in the form of a share sale. Under the terms of the JV, Rivian will supply VW Group with its existing electrical architecture and software technology stack... Rivian is expected to receive an additional $2 billion of capital as part of the joint venture in 2026, CFO Claire McDonough said Thursday on the company earnings call... And while the funds provide a hefty stopgap, Rivian's financial success in 2026 will hinge largely on the rollout of its next EV, the R2 [priced around $45,000].
Read more of this story at Slashdot.