Is This Once-Hyped EV Stock Finally Worth Considering?

Shares of Rivian Automotive (RIVN +20.29%) soared after its initial public offering (IPO) in November 2021. However, the share price has trended lower ever since and now sits some 82% below its IPO price.

Is now the time to step in and buy this electric vehicle start-up?

Rivian’s big goal for 2025

Rivian hasn’t reported its 2025 financial results just yet, but it looks like it will hit one of its key goals: a gross profit for the full year. It first managed a gross profit in the final quarter of 2024, which was the first goal for this metric. It followed that up with a gross profit in two of the first three quarters of 2025. Unless something goes particularly wrong in the final quarter of the year, it looks like Rivian is set to hit yet another of its goals.

Image source: Rivian Automotive.

That said, the big goal for 2026 is already well known. The company is working to produce and sell a mass-market EV, the R2. Currently, Rivian only sells high-end consumer vehicles and delivery trucks. With around $7 billion of cash and short-term investments on its balance sheet, it is almost certain that the company will get the R2 to market. This goal is even more important than achieving a gross profit.

Watch the R2 launch very closely

Here’s the thing: A gross profit isn’t the same as positive earnings. It simply means that Rivian generated more revenue from selling its EVs than it cost to build them. There are other costs lower down on the income statement that it has to cover, too. But right now it isn’t, so it is losing money.

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NASDAQ: RIVN

Rivian Automotive

Today’s Change

(20.29%) $2.84

Current Price

$16.84

Key Data Points

Market Cap

$17B

Day’s Range

$16.46 - $17.92

52wk Range

$10.36 - $22.69

Volume

1.4M

Avg Vol

38M

Gross Margin

-159.38%

What it really needs is to spread its costs over more vehicles. The R2 is essentially the product the company hopes will move it further along its journey toward becoming a sustainably profitable company. If the R2 is well-received, Rivian could have a bright future as an electric vehicle company. If the R2 flounders, the future is far less certain.

Aggressive investors may want to reconsider Rivian

Since Rivian’s cash hoard makes the R2 launch highly likely, more aggressive growth investors may want to consider buying the stock prior to the vehicle’s launch. However, you have to believe strongly that Rivian’s award-winning EV technology will have mass-market appeal. All other investors should probably wait to see if customers actually like the R2 before making a final investment decision.