Rivian Automotive recently surpassed Wall Street’s predictions for its fourth-quarter earnings and reached a milestone with its first gross quarterly profit—a significant achievement that investors have been eagerly anticipating. However, the company has adjusted its sales outlook for 2025, indicating a decline.
In the final quarter of last year, the electric vehicle manufacturer reported a gross profit of $170 million, a figure that reflects production and sales but excludes other expenses. Looking ahead to 2025, Rivian aims to maintain a “modest gross profit.” Yet, the firm has not specified when it might become profitable in terms of net income.
For 2025, Rivian is targeting reduced adjusted losses, projecting a range between $1.7 billion and $1.9 billion, an improvement from the $2.69 billion loss anticipated for 2024. The company also foresees vehicle deliveries ranging from 46,000 to 51,000 units in 2025, slightly down from the 51,579 vehicles delivered in the previous year.
In a recent letter to shareholders, Rivian acknowledged potential external factors that could influence its 2025 goals, such as changes in government policies and the prevailing demand challenges. Despite these uncertainties, Rivian emphasized its commitment to its key strategic objectives and expressed confidence in its long-term vision to electrify the world.
The company reported anticipated capital expenditures for this year between $1.6 billion and $1.7 billion. This increase, from last year’s $1.41 billion, is in preparation for launching its new midsize “R2” vehicles in 2026.
Here’s a quick look at Rivian’s fourth-quarter performance, compared to the average projections compiled by LSEG:
– Loss per share came in at 46 cents, better than the expected loss of 65 cents.
– Revenue reached $1.73 billion, exceeding the anticipated $1.4 billion.
Rivian’s quarterly gross profit and revenue benefitted from $299 million in regulatory credit sales and $214 million in software and services revenue. These regulatory credits are sold to other automakers to assist them in meeting emissions standards.
The net loss for the fourth quarter was reported at $743 million, or 70 cents per share, compared to a $1.52 billion loss, or $1.58 per share, in the same period the previous year.
Over the entire year, Rivian accumulated a loss of $4.75 billion, or $4.69 per share. Meanwhile, 2024’s revenue amounted to $4.97 billion, marking an approximately 12% increase from the $4.43 billion reported in 2023, with fourth-quarter revenue growing more than 31% compared to the same period last year.
Stay tuned as this story continues to develop, with more updates expected soon.
