Rivian (RIVN 8.11%) has emerged as a contender in the electric vehicle (EV) market. Its R1, which comes as either a truck or an SUV, saw considerable sales growth in 2025, with third-quarter 2025 revenue surging by 78% year over year.
But the company has serious problems that make its shares a bit of a tough sell, in my opinion.
Despite the revenue growth, the company is still running at a large net loss of $2.8 billion for the first nine months of 2025. It's also sitting on a net income margin of negative 61%, and profitability is likely a long way off.
Rivian has potential, but I think the better investment move today is Ford Motor Company (F 0.58%).
Image source: Getty Images.
Built Ford tough
Detroit's "Big Three" have really been reduced to the big two after Italian automaker Fiat merged with Chrysler to form the precursor to today's Stellantis (STLA 0.36%). It's just Ford and General Motors (GM 1.80%) now, and between the two of them, Ford is looking stronger.
First, the financials. Despite having a slow 2025 with revenue only growing 3% for the first nine months of the year and earnings per share (EPS) falling, Ford seemed to pick up a bit of momentum moving into the end of last year.
Revenue for Q3 2025 grew by 9% year over year to $50.5 billion, and free cash flow surged by $1.1 billion to $4.3 billion. It also has a net income margin of 2.48%, which is tight but fairly normal for the auto industry, and better than its larger rival GM at 1.63%. Ford's year-over-year revenue growth of 3.75% trumps General Motors' 2.58%.
All in all, Ford is doing rather well in an auto industry that has faced serious headwinds in 2025, like tariffs eating into profit margins, supply chain issues, and slow sales growth throughout 2025.
But Ford is resilient, and I think that has a lot to do with the company's strongest intangible asset -- its brand.
NYSE: F
Key Data Points
American original
Ford is pure Americana and was recently ranked the most iconic company in America, according to Time Magazine and Statista, beating out Apple, Coca-Cola, and Amazon. That's no wonder, since Ford produces two of the most iconic American vehicles ever, the F-150 and the Mustang.
The F-150 in particular is critical, as it has helped Ford achieve the highest brand loyalty of any truck manufacturer in the United States. It's also America's best-selling vehicle year after year, by a considerable margin.
Despite slowing sales across the auto market, Ford sold 828,832 F-Series trucks in 2025, an increase of 8.3%. The F-Series' main competitor and America's second-best-selling vehicle, the Chevrolet Silverado, sold only 558,709 units in 2025. That's a decrease from the 560,264 Silverado units sold in 2024.
The Mustang, on the other hand, remains America's favorite sports car. Ford sold 3% more Mustangs in 2025 than it did in 2024, for a total of 45,333 units (almost double the next best-seller, the Chevrolet Camaro, at 24,533). The Subaru WRX is a distant third at 10,930 units in 2025.
Overall, Ford's strong brand and nostalgic place in the hearts of Americans give it a serious competitive edge in the auto market, and it would be my pick before Rivian.
