Q4 2024 Gross Profit of $170M for Rivian

[Newtonrj]

https://rivian.com/newsroom/article/rivian-releases-fourth-quarter-full-year-2024-financial-results

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.

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[freejack]

To the moon?

 

[Newtonrj]

Looks like their guidance is to repeat this year in delivery performance and slightly pull ahead on EBITDA vs Expenditures to likely show they can manage their remaining cash on hand. It also means to me that they are not going to get the cash-in value they got this year from EV credits so there is still some look-ahead savings the company is banking on. Likely the higher margin Quad/Max and ECV deliveries.

 

[Dark-Fx]

$31k COGS reduction is amazing

 

[DayTripping]

“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.

I guess that decontenting of the Gen 2 trucks really paid off. Amazing how much you can save when you go to electric door releases, reduce the quality of the audio system, etc.

 

[MountainBikeDude]

This last line in the R2 portion of the shareholders letter has me wondering if the R2 platform they were testing was in fact on an R1 chasis. They posted a few times toward the new year about their winter testing in Alaska and the test vehicles making their way there.

 

[Mark_AZR1T]

$31k COGS reduction is amazing

This is excellent. Does anyone know the approximate loss per vehicle sold now?

 

[Hereforthesnacks]

Ugh but lowered sales forecast for 2025. Sigh….

Rivian forecast annual deliveries of between 46,000 and 51,000 vehicles, lower than Wall Street expectations of 55,520, according to 15 analysts polled by Visible Alpha. Last year, it delivered 51,579 units.

 

[SANZC02]

This is excellent. Does anyone know the approximate loss per vehicle sold now?

Maybe 8k, there were reports from Q3 the loss per vehicle was 39k.

Hopefully it is cleared up in the call.

 

[savethemanual]

Ugh but lowered sales forecast for 2025. Sigh….

I was under the impression R1 was not going to grow in sales at all being their flagship vehicle in terms of price, everything rides on R2/3 for them moving forward.

 

[savethemanual]

I'd like to see anther significant EDV partnership with a major company ?

 

[Newtonrj]

This is excellent. Does anyone know the approximate loss per vehicle sold now?

Not a financial expert but if Rivan delivered 51,579 against a gross profit (loss) of $1,200,000,000 = -$23,265 per vehicle delivered across the 4 quarters of '24. This is inclusive of two quarters of Gen1 production and a parts shortage in Q3.

However, for the Q4, they netted up a +$170M with Software/Services contributing $60M. So, clearly, the cars are profitable and the software is positively contributing too.

Also, it looks like software/services are profitable at about $7M/yr. Read: the monthly subscriptions are offsetting costs of software/services.

 

[Motoarzon]

Nice, my call options should do well tomorrow.

 

[Hereforthesnacks]

I was under the impression R1 was not going to grow in sales at all being their flagship vehicle in terms of price, everything rides on R2/3 for them moving forward.

Typically you would see a YoY growth in sales. Not a decline by a significant amount. Seems to be a demand or brand concern issue.

But, yes - their approach is that the R2 will be their money maker.

 

[Hereforthesnacks]

Nice, my call options should do well tomorrow.

Im not expert, but I think it may be trouble tomorrow. Folks will focus on the predicted YoY decline in sales.

I’m happy to be wrong here!

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