Rivian Reports Strong Q4 Results, Narrows EBITDA Loss for 2024

Rivian (RIVN) released impressive Q4 results after the bell on Thursday, achieving its goal of positive gross profit and beating EBITDA estimates for 2024.

Financial Highlights:

* Gross Profit: $170 million, driven by improvements in costs and revenue per unit.
* Revenue: $1.73 billion, surpassing consensus estimates and up 32% year-over-year.
* Adjusted EPS Loss: $0.46, better than the $0.65 estimate.
* Adjusted EBITDA Loss: $277 million, outperforming expectations of $399.8 million.
* Adjusted EBITDA Loss (2024): $2.68 billion, reduced from $2.87 billion projected last quarter.

Operational Updates:

* Rivian produced 49,476 vehicles and delivered 51,579 in 2024.
* In Q4, it produced 12,727 vehicles and delivered 14,183 vehicles.
* Company anticipates 46,000-51,000 vehicle deliveries and an adjusted EBITDA loss of $1.7-$1.9 billion in 2025.

Partnerships and Funding:

* Volkswagen (VWAGY) expanded its partnership with Rivian, investing further in their joint venture.
* Rivian secured a conditional commitment for a $6.6 billion loan from the Department of Energy (DOE).
* Trump administration scrutinizes DOE loan, leaving its status uncertain.

Regulatory Landscape:

* Federal EV tax credit is under review, potentially impacting pure-play automakers like Rivian.
* Rivian expands its revenue streams by opening orders for its EDV commercial delivery van.

Analyst Insight:

"Rivian's focus on cost efficiency is crucial for the launch of its R2 mass market product," said CEO RJ Scaringe. "The company's financial improvements and expansion efforts position it for long-term growth."