Rivian’s Stock Is On Track for Its Best Year Since Going Public. Can It Continue Its Rally in 2026?

Shares in electrical automotive maker Rivian Automotive (Riven 1.54%) It has soared this yr, rising greater than 40% since January. The corporate is on observe for its greatest efficiency since going public in 2021. It fell 43% final yr, however rose 27% the yr earlier than that. Then, when the market crashed in 2022, Rivian’s inventory worth plummeted by a whopping 82%.

Rivian has struggled to achieve help from development buyers for years because of poor monetary outcomes, however issues have been a lot better for shareholders not too long ago. However the massive query is: Will this rally proceed into 2026, or are auto shares prone to fall within the close to future?

Why did Rivian inventory carry out so effectively in 2025?

For a lot of the yr, Rivian’s inventory worth has not elevated, and solely not too long ago has its worth skyrocketed. The large set off got here in early November, when the corporate introduced its third-quarter monetary outcomes. Income for the interval ended Sept. 30 rose 78% to $1.6 billion, beating analysts’ expectations of $1.5 billion. The adjusted loss per share of $0.65 was additionally much less unhealthy than the $0.72 that Wall Road was anticipating.

And earlier this month, the corporate held an “Autonomy & AI Day” to spotlight its efforts and investments in synthetic intelligence (AI). The corporate says its newest {hardware} options “essentially the most superior mixture of auto sensors and inference obtainable in North America.” Following this announcement, the inventory worth hit a brand new 52-week excessive.

Has Rivian confirmed to be a safer inventory to personal?

The principle purpose for Rivian’s struggles in recent times is because of elevated danger and competitors within the EV market. Traders might have come to view Rivian as a safer inventory to personal as of late, because it has been exhibiting robust development and reducing losses.

Nonetheless, I am not going to leap to that conclusion simply but. Rivian’s gross margin for the previous quarter was simply 2%. Whereas that is an enchancment from the destructive income which were reported every so often, it’s not at all an amazing consequence. The corporate’s revenues are additionally pretty modest total, making it a lot simpler for Rivian to realize important year-over-year will increase than for main EV gamers comparable to Tesla, which generates greater than $20 billion in income per quarter.

Rivian nonetheless has a protracted solution to go to show it may be a critical contender within the EV area. Tesla’s revenue margins are shrinking because of elevated competitors within the trade, which does not bode effectively for Rivian in the long run. Regardless of its latest efficiency, it is laborious to argue that Rivian inventory has grow to be safer.

As we speak’s modifications

(-1.54%) -$0.28

present worth

$17.63

Will Rivian inventory be a very good purchase in 2026?

Rivian’s inventory is doing nice in 2025, but it surely’s nonetheless the worst funding total over the previous 5 years, with whole losses exceeding 80% throughout that interval. And between a better-than-expected quarter and inspiring AI information, it is given buyers some purpose to be excited and constructive in regards to the enterprise. With a lot destructive materials already priced in, which will have been sufficient to push the inventory larger in latest weeks.

Nonetheless, we don’t count on 2026 to be one other robust yr for Rivian because of difficult financial situations and customers refraining from making discretionary purchases. In actual fact, EV shares might see some upside subsequent yr. The latest share worth rally could also be encouraging and thrilling, however that does not imply it is prone to proceed. Given all of the dangers and poor fundamentals, Rivian is a inventory I might keep away from.