Post-earnings euphoria evaporates. Rivian Automotive shares are down 5.24% to $15.37, erasing most of the gains from last week’s dramatic 26.8% surge that followed the company’s February 12 earnings beat. The EV maker posted Q4 losses of $0.66 per share versus the $0.79 consensus estimate—a 16.7% beat—but today’s pullback suggests investors are taking profits after the stock rocketed from $14.00 to $17.73 in a single session.
Volume signals profit-taking, not panic. Trading volume sits at 10.3 million shares through midday, roughly 30% of the recent 20-day average. The subdued volume suggests this is technical consolidation rather than a fundamental reversal. The stock now trades 12.3% below its 50-day moving average of $17.52 but remains 3.2% above its 200-day average of $14.89, indicating the longer-term uptrend stays intact despite the post-earnings volatility.
The margin story remains the focus. Rivian’s February 12 press release highlighted $120 million in consolidated gross profit for Q4 2025 and $144 million for the full year—a $1.3 billion improvement over 2024. But with revenue down 25.8% year-over-year and operating margins still deeply negative at -64.8%, the company continues burning cash while ramping production. Analysts maintain a “hold” rating with an average price target of $17.96, suggesting 16.8% upside from current levels if the company can sustain its margin improvements.
R2 launch timing becomes critical. The real question is whether Rivian can maintain momentum ahead of its consumer-focused R2 vehicle rollout. Management noted “outstanding reviews of pre-production R2 with customer deliveries expected in the second half of 2026” in the earnings release. With the stock trading at a $19.1 billion market cap while burning through operating losses, investors need tangible proof that R2 can drive volume without sacrificing the hard-won margin gains.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.