Rivian Reports Strong Q4 Results, Outperforms Expectations
After releasing its Q4 earnings report, Rivian Automotive (RIVN) witnessed a surge in its stock price, rising over 3% in after-hours trading.
Key Performance Indicators
In the fourth quarter, Rivian posted a remarkable gross profit of $170 million, driven by cost optimizations in variable expenses, unit revenue, and fixed costs. Notably, the company narrowed its 2024 EBITDA loss to $2.689 billion, below previous estimates of $2.87 billion.
For the year, Rivian reported total revenue of $1.734 billion, exceeding expectations. The adjusted EPS loss of $0.46 surpassed estimates of $0.65, while the adjusted EBITDA loss of $277 million outperformed expectations of $399.8 million.
2025 Outlook and Guidance
Rivian provided guidance for 2025, projecting an adjusted EBITDA loss in the range of $1.7 billion to $1.9 billion. Vehicle deliveries are anticipated to be between 46,000 and 51,000 units.
Strategic Partnerships and Funding
In November, Rivian expanded its alliance with Volkswagen (VWAGY), securing additional investment from the German automaker for their joint venture. The collaboration will leverage Rivian's "zonal architecture" and software platform for the upcoming midsize R2 SUV, slated for release in early 2026.
Additionally, Rivian received a conditional commitment from the Department of Energy (DOE) for a $6.6 billion loan to support the construction of a new assembly plant outside of Atlanta. However, the loan is currently under review by the new Trump Administration.
Regulatory Environment
The fate of the federal EV tax credit remains uncertain, with potential implications for automakers like Rivian. The company has also opened orders for its EDV commercial delivery van, expanding its potential revenue streams.
Media Contact
Pras Subramanian, Yahoo Finance Reporter
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