Rivian Reports Strong Q4 Results, Narrowing Losses and Forecasting Growth

Rivian (RIVN) unveiled robust fourth-quarter financials, achieving a gross profit milestone and reducing its projected EBITDA loss for 2024 and 2025.

Key Metrics:

* Gross Profit: $170 million, driven by variable cost optimizations, increased revenue per unit, and fixed cost reductions.
* Adjusted Loss Per Share: $0.46, surpassing estimates of $0.65.
* Adjusted EBITDA Loss: $277 million, below the $399.8 million forecast.

Guidance:

* 2025 Adjusted EBITDA Loss: $1.7 billion to $1.9 billion
* 2025 Vehicle Deliveries: 46,000 to 51,000

Outlook:

Rivian remains committed to cost efficiency, particularly in preparation for the launch of its R2 model, which boasts a significantly lower bill of materials. The company expects reduced Q1 deliveries due to seasonality and wildfires in California, with approximately 8,000 deliveries and 14,000 units produced.

Partnerships and Funding:

* Volkswagen (VWAGY): Expanded partnership to leverage Rivian's zonal architecture and software for the R2 SUV launch in 2026.
* Department of Energy (DOE): Conditional $6.6 billion loan to support the construction of Rivian's Atlanta assembly plant, although scrutiny from the new administration is possible.

Risks:

* EV Tax Credit: Potential repeal could impact pure-play automakers like Rivian.
* Regulatory Issues: Headlight recall and ongoing scrutiny surrounding the DOE loan.

Recent Developments:

* Orders open for the EDV commercial delivery van, expanding revenue potential.

Corrections:

* Adjusted loss per share for Q4: $0.46 (corrected from $0.70).
* EBITDA loss for 2023: $3.78 billion (corrected from $3.68 billion).