Q4 2024 Gross Profit of $170M for Rivian

[ryunited]

It seems the reason sales are down for FY 25 will be shutting down a month to start R2 manufacture.

Everything now has to be about profit on R1, EDVs and getting R2 up.

Sponsored

 

[DuoRivian]

Seriously? That's about the max that the market will buy. Need to get the R2 out for growth.

Doesn’t bode well for Scout then trying to sell at this price point.

 

[DuoRivian]

It seems the reason sales are down for FY 25 will be shutting down a month to start R2 manufacture.

Everything now has to be about profit on R1, EDVs and getting R2 up.

The month they were down did hit production but if sales/demand had been strong in the second half then they wouldn’t have needed the incentives to get sales to 2023 levels (50122). So they are forecasting essentially flat sales across three years which include increased EDV sales now the exclusivity has gone.

 

[Oldsmobile_Mike]

Doesn’t bode well for Scout then trying to sell at this price point.

Maybe they're hoping for a new administration around the time they start selling vehicles? ?

 

[emoore]

Doesn’t bode well for Scout then trying to sell at this price point.

Agree. I can't see the scout selling more than 50k units a year with their Rivian copies. Now if they make a cheaper version then that's a different story.

 

[FutureTruck]

The cost cuts are great and all.

But, zero growth in deliveries for 2025?

WTH, RJ?

Buy a $90K R1S in 2025, or a $45k R2 in 2026, that looks EXACTLY THE SAME.

Every person I talk to about buying a Rivian says the same thing “I love your truck, but I think I’m going to wait for the R2.”

Problematic in the short term.

Tesla sells a tiny fraction of their premium models vs the Y and 3.

 

[pricedm]

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

Net loss of $52k per vehicle sold in 2024Q4.

 

[Gen(R3)Xer]

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.

This is great news because it shows that Rivian is serious about becoming profitable and sticking around for the long run. I just don’t understand why the needle on the stock isn’t moving.

 

[beaker]

Flat-ish deliveries of an $80K+ vehicle during a likely substantial recession would be a great achievement.

 

[Mark_AZR1T]

The only reason they made profit is because of environmental regulatory credit and SW services. Without the them, they did not make profit for vehicle sales.

From their shareholder letter:

Drive towards profitability
• Achieved $170 million positive gross profit in the fourth quarter 2024, with $110 million from the automotive segment and $60 million from the software and services segment
• Software and services segment-level gross margin was 28% in the fourth quarter 2024
• Fourth quarter revenue increased $419 million year-over-year, partially supported by a $260 million increase in automotive regulatory credit sales

It is quite a bit of progress and while a profit is nice, let’s be honest here--it’s solely thanks to that $299M in regulatory credit sales. The math still shows a $30K+ loss per vehicle—not terrible, but they missed the mark on true vehicle profitability. A 10% sales dip next year? That’s a tough hill to climb. Bottom line: R2 is make or break.

 

[BigSkies]

Solid results. I had expected flat guidance on the R1 platform, as ~40-45k/yr seems to be about the right volume for this product line. I had hoped for somewhat higher guidance on the EDV now that that's opening up. I figured they could move a decent number more EDV's with a broader market.

At least we're out of the "but they lose bajillions per vehicle" talking points.

 

[mkg3]

Flat-ish deliveries of an $80K+ vehicle during a likely substantial recession would be a great achievement.

Haha, what recession.

 

[Zorg]

Prices went up with gen2 and the expiration of the old pre hike prices, so not surprised with down sales, especially with the loss of the $7500 tax credit. They just need to survive long enough to release the R2

 

[DuoRivians]

It is quite a bit of progress and while a profit is nice, let’s be honest here--it’s solely thanks to that $299M in regulatory credit sales. The math still shows a $30K+ loss per vehicle—not terrible, but they missed the mark on true vehicle profitability. A 10% sales dip next year? That’s a tough hill to climb. Bottom line: R2 is make or break.

-$9k gross margin/vehicle without $299M regulatory credits. Not $30k loss

 

[beaker]

Haha, what recession.

The labor market has been cooling pretty dramatically the last couple of months, consumer confidence measures trending downward, inflation picking up again....add a few hundred thousand extra layoffs from the regime, trade wars, etc.

It doesn't take a crystal ball here.

Sponsored