Rivian’s stock has plummeted by 80% since its IPO in 2021, facing challenges as it tries to compete with Tesla in the luxury EV market. With declining EV sales and the expiration of the U.S. EV tax credit, Rivian’s future looks uncertain for investors heading into 2026.

The U.S. EV tax credit, which expired on Sept. 30, 2025, had a significant impact on the entire industry, leading to a drop in demand for electric vehicles. This, coupled with Rivian’s declining vehicle deliveries and production numbers, paints a bleak picture for the company’s long-term prospects.

Rivian’s revenue spike in the third quarter of 2025 was short-lived, driven by buyers rushing to purchase vehicles before the tax credit expired. Once the credit ended, deliveries dropped significantly, revealing underlying issues in the company’s business model. Rivian’s heavy reliance on automobile sales poses a risk as the EV market slows down.

Despite some growth in software revenue, Rivian’s main source of income still comes from automobile sales. The company’s focus on luxury EVs may work against it as consumers seek more affordable options. With waning interest in EVs and tightening budgets, Rivian faces challenges in maintaining its market position.

Investors are urged to look for growth stocks with better potential than Rivian, given its uncertain future. As the EV market shifts and financial incentives for electric vehicles diminish, Rivian may struggle to keep up with changing consumer preferences. It’s a risky bet for investors looking for long-term gains.

Read more at Yahoo Finance: Here’s Why I Wouldn’t Touch Rivian With a 10-Foot Pole