Electric vehicle manufacturer Rivian reported a strong fourth-quarter earnings report on Thursday, with a gross profit of $170 million, primarily driven by cost savings and revenue growth. The company’s full-year 2024 EBITDA loss was smaller than expected, at $2.68 billion, compared to a year-ago loss of $3.78 billion.
Rivian CEO RJ Scaringe attributed the positive results to “cost efficiency” and “revenue per delivered unit.” However, the company’s guidance for 2025 was mixed, with adjusted EBITDA loss projected in the range of $1.7 billion to $1.9 billion, and vehicle deliveries expected between 46,000 and 51,000.
Despite the strong Q4 earnings, Rivian stock dipped 3% on Friday morning, likely due to concerns over the company’s guidance and macroeconomic headwinds. Analysts noted that the company’s conservative FY25 guidance may be a sign of caution amid economic uncertainty.
Rivian has several revenue streams in the pipeline, including its EDV commercial delivery van and partnership with Volkswagen. The company also recently secured a $6.6 billion loan from the Department of Energy, which is expected to support the construction of its upcoming assembly plant.
However, regulatory headwinds may impact Rivian’s operations. The Trump White House has indicated it may repeal the federal EV tax credit, which could affect companies like Rivian, Lucid, and Tesla.
Source: https://finance.yahoo.com/news/rivian-posts-170-million-gross-profit-in-q4-sees-losses-decreasing-as-variable-costs-improve-185717790.html