Rivian Reports Strong Q4, Raises Earnings Outlook
Rivian Automotive (RIVN) released robust fourth-quarter results, exceeding expectations on several key metrics. The electric vehicle manufacturer posted its first-ever quarterly gross profit, highlighting significant progress in cost reductions and operational efficiency.
Financial Highlights:
* Revenue: $1.73 billion, exceeding consensus estimates by 32%
* Gross Profit: $170 million, driven by variable cost improvements and revenue per unit
* Adjusted Loss per Share: -$0.46, beating estimates of -$0.65
* Adjusted EBITDA Loss: -$277 million, better than expectations of -$399.8 million
Key Initiatives and Guidance:
* Rivian projects a smaller-than-expected full-year 2025 adjusted EBITDA loss in the range of $1.7 billion to $1.9 billion.
* Vehicle deliveries are expected between 46,000 and 51,000 units in 2025.
* The company expects approximately 8,000 deliveries in Q1 due to seasonality and wildfires in California.
Market Reaction:
Despite the positive results, Rivian stock initially declined 3% in early trading but later recovered and closed up on Friday.
Analyst Commentary:
* Wedbush analyst Dan Ives noted Rivian's "conservative" FY25 guidance and potential headwinds from macro factors.
* CFRA analyst Garrett Nelson reiterated a "Sell" rating due to weaker-than-expected 2025 guidance and concerns about the potential clawback of the $6.6 billion Energy Department loan.
Other Key Developments:
* Rivian announced an expansion of its partnership with Volkswagen (VWAGY) for its midsize R2 SUV.
* The company received a conditional commitment for a $6.6 billion loan from the Department of Energy.
* Rivian opened up orders for its EDV commercial delivery van to diversify its revenue streams.
Correction:
An earlier version of this article incorrectly reported the adjusted loss per share for Q4 as -$0.70. This has been corrected to -$0.46. Additionally, the EBITDA loss for last year was corrected to -$3.78 billion.