Rivian Achieves Positive Gross Profit in Q4 2024 Earnings
Rivian, the electric vehicle (EV) maker, has achieved its goal of achieving a positive gross profit in the fourth quarter of 2024. The company released its fourth-quarter earnings after the market closed on Thursday, revealing some significant financial achievements.
In the Q4 earnings report, Rivian announced a gross profit of $170 million, marking a $776 million improvement from the same period in 2023. This milestone was driven by lower costs, including per vehicle delivered, and notable cost improvements after launching its second-generation R1 models. Of the $170 million gross profit, $100 million came from auto sales, while the remaining $60 million was from software and services.
Rivian’s total fourth-quarter revenue stood at $1.73 billion, surpassing Wall Street expectations of $1.4 billion. The company generated $1.52 billion in automotive revenue, primarily from selling 14,183 vehicles during the quarter. Additionally, Rivian earned $299 million from the sale of regulatory credits and $484 million from software and services.
CEO RJ Scaringe expressed satisfaction with the achievement, stating, “This quarter, we achieved positive gross profit and removed $31,000 in automotive cost of goods sold per vehicle delivered in Q4 2024 relative to Q4 2023.” Rivian generated $110 million in automotive gross profit in the quarter, a significant improvement from the $611 million loss in Q4 2023.
Throughout the year, Rivian produced 49,476 vehicles at its Normal, IL plant and delivered 51,579 units, including the R1S SUV, R1T pickup, and electric delivery van for Amazon. The company also opened orders for its Commercial Van for customers outside Amazon earlier this month.
Looking ahead, Rivian closed an EV joint venture with Volkswagen during the fourth quarter, a deal worth up to $5.8 billion. As part of the partnership, Rivian will supply its EV architecture and software for Volkswagen’s next-gen models, starting with the midsize R2 electric SUV, priced at around $45,000.
Despite facing uncertainties around funding for its new manufacturing plant in Georgia, Rivian remains confident in its growth plans. The company expects to scale up production with the R2 launch and additional models in the future. Rivian aims to achieve operational efficiencies, reduce costs, and introduce new products to drive long-term growth and profitability.
In conclusion, Rivian’s Q4 2024 earnings report reflects a significant milestone for the company, with positive gross profit and strong revenue performance. As Rivian continues to expand its product lineup and production capacity, the company remains focused on achieving sustainable growth and profitability in the EV market.
