Electric truck manufacturer Rivian Automotive has reported a significant milestone in its financial performance, with the company posting its first quarterly gross profit of $170 million for the fourth quarter of 2024. This marks a notable turnaround from the loss of $606 million that Rivian experienced in the same quarter the previous year.
The improved financial results were attributed to various factors, including better variable costs, higher revenue per delivered unit, and effective management of fixed costs. Despite this achievement, Rivian still reported a net loss attributable to common stockholders of $743 million for Q4 2024, an improvement from the $1.52 billion loss in the corresponding period in 2023.
For the full year, Rivian reported a net loss of $4.74 billion or $4.69 per share. However, the company’s revenue for the year totaled $4.97 billion, showing an increase from $4.43 billion in 2023. In the fourth quarter alone, Rivian achieved record revenue of $1.7 billion, up from $1.31 billion in the prior-year period.
This growth in revenue was driven by a combination of factors, including the sale of regulatory credits, a surge in software and services revenue, and higher average selling prices for the R1 model due to increased availability of its Tri-Motor offering. Rivian expects these improvements to continue benefiting the company in the long term and aims to achieve a “modest gross profit” for the current year.
In terms of production and delivery numbers, Rivian produced 12,727 vehicles in the fourth quarter at its manufacturing facility in Normal, Illinois, and delivered 14,183 vehicles. For the full year of 2024, the company produced 49,476 vehicles and delivered 51,579. Looking ahead to 2025, Rivian has set a forecast to deliver between 46,000 and 51,000 units.
To support its future growth and product development, Rivian anticipates capital expenditures to be between $1.6 billion and $1.7 billion this year, an increase from $1.41 billion in the previous year. These investments are in preparation for the launch of the new “R2” midsize vehicles next year. The company plans to idle its Normal auto plant in the second half of 2025 to retrofit the facility for the production of these new vehicles.
However, Rivian acknowledges that external factors such as changes to government policies and regulations, as well as a challenging demand environment, could impact its expectations for 2025. CEO RJ Scaringe emphasized the importance of cost efficiency across the business, particularly in preparation for the launch of the mass-market R2 product. He highlighted that the bill of materials for the R2 is approximately 95% sourced and is expected to be around half that of the improved R1 bill of materials.
In a recent development, Rivian expanded the sales for its Rivian Commercial Van, originally designed for Amazon, to fleets of all sizes across the US. This move reflects Rivian’s continued efforts to broaden its market reach and establish a strong presence in the electric vehicle industry.
