Rivian Posts Strong Earnings, Narrowing Losses
Rivian (RIVN) released impressive Q4 results, hitting its target of "gross profit" and reducing its projected 2024 EBITDA loss. Despite these positive developments, RIVN stock initially declined by 1.54% in pre-market trading on Friday.
Gross Profit and Cost Reductions
Rivian reported a Q4 gross profit of $170 million, driven by cost improvements in variable costs, revenue per unit, and fixed costs. CEO RJ Scaringe noted the company's focus on cost efficiency, emphasizing its significance for the upcoming R2 mass market product.
Financial Outlook
Rivian estimates a 2025 full-year adjusted EBITDA loss of $1.7 billion to $1.9 billion, with vehicle deliveries ranging from 46,000 to 51,000. CFO Claire McDonough anticipates fewer deliveries in Q1 due to seasonality and wildfires, projecting 8,000 deliveries and 14,000 units produced.
Financial Highlights
* Q4 revenue: $1.73 billion (vs. $1.38 billion consensus estimate)
* Adjusted loss per share: $0.46 (vs. $0.65 estimate)
* Adjusted EBITDA loss: $277 million (vs. $399.8 million estimate)
* 2024 adjusted EBITDA loss: $2.68 billion (improved from $3.78 billion in 2023)
Partnership and Funding
Rivian expanded its partnership with Volkswagen (VWAGY) and secured a $6.6 billion loan commitment from the DOE. However, the Trump White House and DOGE express scrutiny towards the deal.
Regulatory Challenges
Uncertainty surrounds the future of the federal EV tax credit, potentially impacting Rivian and other pure-play automakers.
Commercial Expansion
Rivian announced plans to open orders for its EDV commercial delivery van, offering a new revenue stream.
Correction
Previously reported adjusted loss per share for Q4 was $0.70, corrected to $0.46. 2023 EBITDA loss has also been corrected to $3.78 billion.