Rivian Automotive, Inc. today announced fourth quarter and full year 2024 financial results. Rivian reported a gross profit of $170 million in the fourth quarter of 2024, primarily driven by improvements in variable costs, revenue per delivered unit, and fixed costs. Rivian expects these improvements to benefit it over the long-term and position the company well to achieve modest gross profit for 2025. Rivian achieved record revenues in the fourth quarter of 2024 driven by the sale of regulatory credits and software and services revenue growth as well as increasing R1 average selling prices with the increased availability of its Tri-Motor offering.
In the fourth quarter, Rivian produced 12,727 vehicles at its manufacturing facility in Normal, Illinois and delivered 14,183 vehicles. For the full-year 2024, Rivian produced 49,476 vehicles and delivered 51,579.
During the fourth quarter of 2024, Rivian and Volkswagen Group closed their joint venture, Rivian and Volkswagen Group Technology (the “Joint Venture”). With a total deal size of up to $5.8 billion, including $3.5 billion of proceeds expected to be received over the next several years, the Joint Venture plans to bring next-generation electrical architecture and best-in-class software technology for Rivian and Volkswagen Group future electric vehicles, starting with the R2. Furthermore, Rivian closed a loan agreement with the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) for up to $6.6 billion (including $6 billion of principal and approximately $600 million of capitalized interest). The loan is expected to support the construction of Rivian’s next U.S. manufacturing facility in Georgia, which aims to create approximately 7,500 jobs in the local area. The capital associated with the Joint Venture and DOE loan, in addition to Rivian’s current cash, cash equivalents, and short-term investments, is expected to provide the capital resources to fund operations through the ramp of R2 in Normal, as well as the midsize platform in Georgia – enabling a path to positive free cash flow and meaningful scale.
Rivian’s commercial van offering continues to progress. In 2024 more than 1 billion packages were delivered by Amazon in the Rivian Electric Delivery Van (EDV) in the U.S. alone. Earlier this month, Rivian opened sales for its commercial van to fleets of all sizes in the U.S. The Rivian Commercial Van is the platform on which Amazon’s custom EDV is based, and is designed from the ground up, prioritizing safety, driver comfort, total cost of ownership and sustainability.
RJ Scaringe, Founder and CEO, Rivian said:
“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. Our focus on cost efficiency across the business is critical for the launch of our mass market product, R2. The R2 bill of materials is approximately 95% sourced and is expected to be approximately half that of the improved R1 bill of materials. I couldn’t be more excited about R2, and I believe the combination of capabilities and cost efficiencies along with the amazing level of excitement from customers will make R2 a truly transformational product for Rivian.”
External factors could impact Rivian’s 2025 expectations, including changes to government policies and regulations and a challenging demand environment. Rivian’s guidance represents management’s current view on potential adjustments to incentives, regulations, and tariff structures.
SOURCE: Rivian
