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Rivian reported that for the first time revenue exceeded the cost of building its electric vehicles, even as the carmaker said it would deliver fewer trucks and vans this year as demand slows and the Trump administration hits out at the EV industry.
The Californian carmaker posted $170mn in gross profit in the fourth quarter, exceeding Wall Street expectations of $20mn, as it lowered costs while improving revenue per vehicle delivered. Chief executive RJ Scaringe said Rivian had cut $31,000 off the cost of manufacturing each vehicle.
Gross profits account for revenues less the cost of goods sold but do not account for other expenses such as taxes. Rivian reported a gross loss of $606mn in the final three months of 2023.
Shares in Rivian rose 7 per cent in after-hours trading before falling back to near Thursday’s closing price of $13.61.
But Rivian also said it would deliver fewer electric trucks and vans this year than in 2024. Last year it delivered just under 51,600 EVs, while it forecast it would deliver between 46,000-51,000 vehicles this year.
The company is having to navigate slowing EV demand; the influence wielded by Tesla chief executive Elon Musk in the White House; and the tumult facing the entire car industry from potential tariffs. Trump has threatened levies that would hit automotive suppliers in Canada and Mexico, as well as raw materials such as steel and aluminium.
Claire McDonough, Rivian’s chief financial officer, said that changes to tax incentives, tariffs and the market for regulatory credits could all affect the company’s forecast for the year.
She added that the carmaker was “looking forward to working with the new administration” to disburse a $6.6bn loan awarded by the US Department of Energy in the final days of former president Joe Biden’s administration.
Scaringe added that US innovation around transportation and energy requires “a mosaic of different companies” that “give customers choices as they start to think about electrification”.
Rivian reported a net loss of $4.7bn in 2024, compared with $5.4bn the previous year.
