Electric vehicle manufacturer Rivian posts first quarterly profit in Q4 2024, predicts decreased deliveries for the year 2025.
Rivian's Q4 2024 Performance and 2025 Outlook
Rivian, the electric vehicle (EV) manufacturer, reported its financial results for Q4 2024, showcasing a series of significant achievements. The company's revenue for Q4 2024 reached $1.73 billion, surpassing Wall Street expectations. This figure represents a growth from $4.43 billion in 2023 to $4.97 billion for the full year of 2024.
In a notable development, Rivian secured a loan agreement with the U.S. Department of Energy (DOE) for up to $6.6 billion to support the construction of its upcoming manufacturing facility in Georgia. This investment is aimed at boosting Rivian's production capacity and electrifying the world.
Rivian's cost of goods sold per vehicle was reduced by $31,000 compared to Q4 2023, a positive indicator of operational efficiency. The company also reported a first-ever quarterly gross profit of $170 million in Q4 2024.
However, Rivian's net loss for Q4 2024 was $743 million, or $0.70 per share, compared to a loss of $1.52 billion, or $1.58 per share, in the same period last year. The company narrowed its adjusted EBITDA loss to $277 million in Q4 2024, an improvement from the anticipated $399.8 million loss.
Rivian delivered 14,183 vehicles in the fourth quarter of 2024, marking a significant milestone for the company. Despite these positive developments, the company's vehicle deliveries for 2025 are projected to remain between 46,000 and 51,000 units, representing no growth or possible retraction compared to 2024.
Rivian's CEO, RJ Scaringe, remains optimistic about the company's long-term trajectory despite challenges in 2025. He stated that external factors such as changes in government policies and regulations, and a challenging demand environment could impact the company's 2025 expectations.
One such factor is the possible changes to federal EV incentives and tariff policies, which could impact consumer demand in 2025. The loan agreement with the U.S. Department of Energy does not mention any uncertainty related to the Trump administration freezing federal funding.
Looking ahead, Rivian's R2 model is still expected to launch in 2026. The company remains focused on executing against its key value drivers and is confident in its long-term trajectory to electrify the world.
