- Rivian Automotive (RIVN) shares rose 1.30% to $13.79 in after-hours trading after beating Q4 expectations with a $0.46 per share loss versus $0.65 expected and $1.73 billion in revenue against $1.4 billion forecasted, achieving its first gross profit of $170 million.
- Despite a 2024 revenue increase to $4.97 billion and a Q4 net loss reduction to $743 million from $1.52 billion the prior year, Rivian forecasts lower 2025 deliveries of 46,000-51,000 units compared to 51,579 in 2024, aiming for a modest gross profit.
- The company anticipates narrowing adjusted losses to $1.7-$1.9 billion in 2025 from $2.69 billion in 2024, but its $4.75 billion annual net loss and lack of a bottom-line profitability timeline temper investor enthusiasm despite operational gains.
Rivian Automotive (RIVN) shares edged up 1.30% to $13.79 in after-hours trading on Thursday, reflecting a mixed investor response to the electric vehicle maker’s Q4 results, which showcased its first quarterly gross profit of $170 million – driven by $110 million from its automotive segment and $60 million from software and services – but tempered enthusiasm with a forecast of reduced sales for 2025. The company outperformed Wall Street expectations with a Q4 loss per share of $0.46 against an anticipated $0.65 and revenue of $1.73 billion surpassing the $1.4 billion estimate. Despite this milestone, Rivian’s projection of delivering 46,000 to 51,000 units in 2025 – down from 51,579 in 2024 – signals a cautious outlook, even as it aims for another modest gross profit and a narrower adjusted loss range of $1.7 billion to $1.9 billion, improving from 2024’s $2.69 billion deficit.
Rivian’s full-year performance in 2024 showed revenue growth to $4.97 billion, a 12% increase from $4.43 billion in 2023, with Q4 alone jumping over 31% year-over-year, underscoring its ability to scale production and sales of its R1T and R1S models amid a competitive EV landscape. However, the company’s net loss for the year stood at $4.75 billion, or $4.69 per share, a significant burden that highlights the steep costs of its expansion efforts and the absence of bottom-line profitability, which Rivian has yet to pinpoint a timeline for achieving. The Q4 net loss narrowed to $743 million, or $0.70 per share, from $1.52 billion, or $1.58 per share, a year prior, indicating progress in cost management and operational efficiency.
The market’s initial 6% after-hours surge in Rivian’s stock, later moderated, reflects a tug-of-war between optimism over the gross profit milestone – a key indicator of production viability – and concern over the projected sales dip, possibly linked to macroeconomic factors like softening EV demand or supply chain constraints. Rivian’s journey mirrors the broader challenges in the EV sector, where scaling production profitably remains elusive amidst heavy capital investments. With fiscal 2024 marked by volatility, Rivian’s ability to maintain gross profitability while narrowing losses in 2025 will be critical to sustaining investor confidence in its long-term vision of electrifying transportation.
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