Rivian Posts Strong Q4 Results, Despite Premarket Stock Dip

Earnings and Guidance

Rivian (RIVN) reported solid fourth quarter results, exceeding expectations in several areas:

* Gross profit reached $170 million, driven by cost improvements and higher revenue per delivered unit.
* Adjusted EBITDA loss for 2024 came in lower than anticipated at $2.68 billion.
* For 2025, Rivian forecasts an adjusted EBITDA loss between $1.7 billion and $1.9 billion, with vehicle deliveries estimated at 46,000-51,000.

Key Financial Metrics

For Q4, Rivian reported:

* Revenue: $1.73 billion (32% increase YoY)
* Adjusted loss per share: $0.46 (beating estimates of $0.65)
* Adjusted EBITDA loss: $277 million (better than expected $399.8 million)

Operational Updates

* Rivian produced 49,476 vehicles and delivered 51,579 in 2024.
* In Q4, it produced 12,727 vehicles and delivered 14,183.
* The company announced an expansion of its partnership with Volkswagen, focusing on the development of a midsize R2 SUV.
* Rivian received a conditional commitment from the Department of Energy for a $6.6 billion loan to support the construction of a new assembly plant outside Atlanta.

Market Reaction

Despite the positive results, Rivian stock initially declined by 2% in premarket trading on Friday. However, after-hours trading showed a modest recovery, with the stock gaining over 3%.

Other Notes

* Rivian is recalling 17,260 US vehicles due to a headlight issue.
* The status of the federal EV tax credit remains uncertain and could impact pure-play automakers like Rivian.
* The company plans to open up orders for its EDV commercial delivery van, providing a potential new revenue stream.