Strong Fourth-Quarter Performance
Rivian’s Q4 Earnings surpassed Wall Street’s expectations, marking a significant milestone by achieving its first-ever gross quarterly profit. The electric vehicle (EV) manufacturer reported a gross profit of $170 million for the final quarter of 2024, a critical benchmark for investors. Revenue for the quarter reached $1.73 billion, exceeding analysts’ forecasts of $1.4 billion. Additionally, Rivian’s loss per share came in at 46 cents, better than the projected 65-cent loss. The company’s stock initially rose by 7% in after-hours trading but later stabilized, closing at $13.61 per share, a 2.3% decline.
Rivian’s financial results were bolstered by the sale of regulatory credits, which contributed $299 million, and software and services revenue totaling $214 million. The automaker has now begun separately reporting its “Automotive” and “Software and Services” segments to enhance transparency for investors. Looking ahead, Rivian aims to further expand its software business, including a newly announced joint venture with German automaker Volkswagen.
Forecast for 2025: Lower Deliveries and Narrowing Losses
Despite Rivian’s Q4 Earnings being strong, the company has issued a cautious outlook for 2025, anticipating a reduction in vehicle deliveries. The company forecasts between 46,000 and 51,000 unit deliveries for the year, a decrease from the 51,579 vehicles delivered in 2024. However, Rivian expects to reduce its adjusted losses to a range of $1.7 billion to $1.9 billion, an improvement from the $2.69 billion loss recorded last year.
Rivian CEO RJ Scaringe cited uncertainty in the automotive industry as a factor influencing the company’s projections. Potential changes in federal EV incentives and trade policies could impact demand and regulatory conditions. “While uncertainties persist, we remain focused on executing against our key value drivers and are confident in electrifying the world in the long term,” the company stated in its shareholder letter. Chief Financial Officer Claire McDonough further explained that Rivian factored in “hundreds of millions” in projected revenue losses due to expected changes in tax credits, affecting its EBITDA outlook.
Investment in Future Growth
To position itself for long-term growth, Rivian plans to increase capital expenditures in 2025 to a range of $1.6 billion to $1.7 billion, up from $1.41 billion last year. This investment will help the company prepare for the launch of its upcoming “R2” midsize vehicle line in 2026. As part of these preparations, Rivian intends to idle its sole manufacturing plant in Normal, Illinois, in the second half of 2025 to retool for production.
Despite near-term challenges, Rivian remains optimistic about its future. During the earnings call, McDonough expressed confidence in the company’s growth, saying, “We believe R2 will be truly transformative for our growth and profitability.” Rivian’s Q4 Earnings report highlighted an annual revenue of $4.97 billion for 2024, reflecting a 12% increase from 2023. With a strategic focus on software expansion and new vehicle models, Rivian’s Q4 Earnings indicate the company’s aim to solidify its position in the competitive EV market while navigating a challenging economic landscape.
