Rivian Reports $170 Million Q4 Gross Profit, Sees Cost Efficiency Gains

EV Maker Projects Lower Losses in 2025 Amid Improved Variable Costs

Rivian (RIVN) delivered a strong fourth-quarter performance, achieving a gross profit of $170 million, marking a significant milestone in its financial trajectory. This profitability was largely attributed to optimized variable costs, higher revenue per vehicle, and better management of fixed expenses. The electric vehicle (EV) manufacturer also reported a lower-than-expected adjusted EBITDA loss for the full year of 2024 and forecasted a smaller loss in 2025.

CEO RJ Scaringe emphasized the company's success in reducing automotive costs, noting a $31,000 decrease in per-vehicle cost of goods sold in Q4 2024 compared to the same period in 2023. This cost reduction is pivotal for Rivian’s upcoming mass-market R2 SUV, scheduled for launch in the first half of 2026. The R2's bill of materials is approximately 95% finalized and expected to cost about half as much as the improved R1 model.

For 2025, Rivian anticipates an adjusted EBITDA loss between $1.7 billion and $1.9 billion, with projected vehicle deliveries ranging from 46,000 to 51,000. However, CFO Claire McDonough cautioned that deliveries in Q1 2025 would likely be lower due to seasonal trends and the impact of California wildfires, a key market for the brand. The company estimates 8,000 deliveries and 14,000 units produced in Q1.

Rivian's Q4 revenue stood at $1.73 billion, surpassing Bloomberg consensus estimates of $1.38 billion. This represented a 32% increase from the previous year’s $1.31 billion. The automaker reported an adjusted loss per share of $0.46, beating the projected $0.65 loss, while its adjusted EBITDA loss of $277 million was better than the anticipated $399.8 million. For the full year, Rivian recorded an adjusted EBITDA loss of $2.68 billion, improving from its $3.78 billion loss in 2023 and outperforming the previous quarter’s estimate of $2.87 billion.

Production and delivery figures also reflected Rivian’s steady growth. The company produced 49,476 vehicles and delivered 51,579 units in 2024, with Q4 alone accounting for 12,727 vehicles produced and 14,183 delivered. As of the end of the year, Rivian reported $5.29 billion in cash and cash equivalents, down from $7.85 billion a year earlier.

Beyond financials, Rivian expanded its collaboration with Volkswagen (VWAGY) in November, strengthening their joint venture. Volkswagen continues to invest in the partnership, which leverages Rivian’s innovative zonal electrical architecture and software stack for future vehicle development.

Additionally, Rivian secured a conditional commitment for a $6.6 billion loan from the Department of Energy (DOE) under its Advanced Technology Vehicles Manufacturing (ATVM) program. The funding aims to support the construction of Rivian’s new assembly plant outside Atlanta. However, with a new administration in the White House, the Department of Government Efficiency (DOGE) is set to review the agreement, potentially affecting the loan’s final approval.

Another regulatory uncertainty for Rivian and other EV manufacturers is the potential repeal of the federal EV tax credit. The Trump administration and the Republican Party have signaled interest in removing these incentives, which could impact demand for electric vehicles from Rivian, Tesla (TSLA), and Lucid (LCID).

Looking ahead, Rivian is diversifying its revenue streams. The company recently announced plans to open orders for its EDV commercial delivery van, aiming to scale production and drive revenue growth while continuing to refine its cost structure. This move aligns with Rivian’s broader strategy of strengthening financial sustainability while expanding its market footprint.