Every Rivian Investor Should Keep an Eye on This Number

Many electric vehicle stocks have faced challenges in 2025. Rivian Automotive (RIVN) has also seen a decline, dropping about 20% so far this year. Despite this downturn, various valuation metrics indicate that Rivian's shares are currently at some of their lowest prices in recent years. This is noteworthy, especially given that the company approaches a significant turning point for growth.

If you consider buying this growth stock at a lower price, there's one critical number you should closely monitor.

Why This Number Matters for Rivian

Recently, Rivian announced some encouraging news: it achieved a positive gross margin for the first time in its history. Previously, the company had been losing money on each vehicle sold, meaning its losses grew even as sales increased. However, Rivian has finally demonstrated to the market that it can generate profits on a per-vehicle basis.

For those who have followed the company closely, this achievement might not come as a surprise. Rivian's CEO, R.J. Scaringe, had assured investors that the company would reach positive gross margins by the end of the year. A year prior, Rivian was losing over $30,000 for every vehicle sold, so turning that figure into a positive gross profit is a significant milestone.

Looking ahead, management anticipates that they will start delivering their first mass-market model, the R2, in early 2026. This upcoming vehicle, expected to be priced under $50,000, has the potential to greatly boost sales. Achieving positive gross margins will also provide Rivian with the financial groundwork needed to reach this pivotal growth point—all of this is contingent on maintaining those positive margins.

This is why it’s vital to keep a close eye on Rivian's gross margin numbers in the coming quarters. If their gross margin dips back into negative territory, it could suggest that the recent shift to profitability was merely an accounting adjustment. Conversely, if the gross margin remains positive, this could significantly enhance confidence in Rivian's ability to sustain its operations until 2026. That period is when the company is poised for what could be its most remarkable growth phase to date.

Ryan Vanzo does not hold any positions in the stocks mentioned above. The authorship of this article is neutral and does not reflect any affiliation with the companies discussed.

Rivian, Growth, Investing