Rivian just had its best day ever on the stock market, after more than 4 years of pain

The EV-maker’s software division helped power a strong Q4, as industry giants pump the brakes on their electric ambitions.

It’s been a brutal start to the year for many EV producers.

With federal tax credits for new EVs abolished since the end of September, companies have been under pressure to cut prices to make up for lost subsidies. But, even with discounts, sales have slumped — data cited by the WSJ suggests that EV sales fell more than 30% in the fourth quarter of 2025, and January looks to be even worse.

Industry giants have had enough, announcing huge pullbacks in their electrification endeavors. Ford notched a $19.5 billion expense in December, while Jeep-owner Stellantis went further, announcing an eye-watering $26 billion worth of special charges over its EV pullback just ten days ago.

With that backdrop, it was a surprise when electric upstart Rivian had its best day on the stock market ever, jumping more than 25% on Friday.

Rivived?

Rivian’s main business, selling cars, is still a cash incinerator. For every vehicle sold, the company is losing money — about $10,200 to be exact — but Rivian’s software business is proving to be something of a silver lining.

Last year, its software and services division made the company some $576 million of gross profit. Collectively, that helped the company book a positive gross profit of $144 million, a whopping $1.34 billion improvement on 2024. That jump, plus a forecast that the company will deliver between 62,000 and 67,000 vehicles in 2026, helped supercharge the stock.

However, while adding more than a quarter of its value in a single day is still impressive, it’s nothing compared to what Rivian raced through in its peak — even with Friday’s jump, the company’s market cap is roughly one-seventh of its peak value in 2021, shortly after its IPO… back in the days when the market believed that EVs would be the next big thing.