Rivian Reports Strong Q4 Results, Meets Gross Profit Goal

Rivian (RIVN) released impressive fourth quarter financials, achieving its target of positive gross profit and surpassing expectations with a narrower full-year 2024 adjusted EBITDA loss. The company anticipates further progress in 2025.

Strong Q4 and Improved Guidance

Rivian reported a gross profit of $170 million in Q4, attributed to improved variable costs, revenue growth, and fixed cost reductions. The company also realized a $31,000 per vehicle reduction in automotive cost of goods sold in Q4 2023 compared to Q4 2024. CEO RJ Scaringe emphasized the importance of cost efficiency for the launch of its R2 mass-market SUV.

Rivian estimates a 2025 adjusted EBITDA loss of $1.7 to $1.9 billion, with vehicle deliveries ranging from 46,000 to 51,000. Due to seasonality and wildfires in California, CFO Claire McDonough anticipates lower Q1 deliveries (8,000) and production (14,000 units).

Financial Performance

For Q4, Rivian exceeded revenue expectations, reporting $1.73 billion. This represents a 32% increase year-over-year and a $0.46 adjusted loss per share, surpassing estimates for a $0.65 loss. Adjusted EBITDA loss was $277 million, better than anticipated $399.8 million.

For 2024, Rivian posted an adjusted EBITDA loss of $2.68 billion, an improvement over the previous projection and year-over-year loss of $3.78 billion.

Production and Partnerships

In 2024, Rivian produced and delivered 49,476 and 51,579 vehicles, respectively. In Q4 alone, it produced 12,727 and delivered 14,183 units.

Rivian continues to expand its partnership with Volkswagen (VWAGY), enabling the launch of its midsize R2 SUV in 2026. The company also secured a conditional $6.6 billion loan from the Department of Energy for its Atlanta assembly plant.

Regulatory and Growth Prospects

The future of the federal EV tax credit remains uncertain, potentially impacting companies like Rivian. However, the company plans to expand its revenue stream by opening orders for its EDV commercial delivery van.