Rivian stock soars 24% as Tesla lags behind in rally

In the United States, Rivian experienced its largest single-day stock increase on January 3, 2025, with shares gaining 24%. This surge is part of a larger trend among automakers, which saw significant stock price increases following the recent election. Rivian's performance contrasted with predictions about potential adverse impacts of President-elect Donald Trump's stance on electric vehicle subsidies, showcasing the company's resilience. Notably, the positive momentum in Rivian stock also coincided with Ford and General Motors reporting their highest annual car sales since 2019, which contributed to the strength of the broader automotive market. Although Rivian stock's recent rally demonstrates a marked recovery, it remains down approximately 90% from its peak shortly after its 2021 initial public offering. By December 2024, Rivian had delivered about 52,000 vehicles, representing only 3% of Tesla's deliveries that year, highlighting the stark contrast in performance and market share between the two companies. Rivian's market capitalization of $17 billion is merely 1% of Tesla's astounding $1.3 trillion value, underscoring the challenges the company faces in achieving significant scale and profitability. Despite the upbeat stock performance, Rivian has not recorded a profitable quarter since becoming a public entity. The company has incurred consistent losses, with reports indicating at least a $558 million loss before interest, taxes, depreciation, and appreciation in each of its 14 quarters as a public company. This ongoing struggle to achieve profitability opens discussions about the long-term sustainability of Rivian's business model, especially as it competes against established players like Tesla, which has reported formidable delivery numbers in contrast to Rivian's relatively low figures. Ultimately, Rivian's recent stock performance reflects broader market trends within the automotive sector post-election, but questions remain regarding its long-term viability and ability to maintain momentum without solidifying its market position and achieving profitability.