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Electric truck maker Rivian Automotive has reported its first quarterly gross profit of $170m for the fourth quarter (Q4) of 2024, marking a turnaround from a loss of $606m in the corresponding quarter the previous year.
The improvement was attributed to better variable costs, revenue per delivered unit, and fixed costs management.
Despite this achievement, Rivian posted a net loss attributable to common stockholders of $743m for Q4 2024, which is an improvement from a $1.52bn loss in the same period a year earlier.
For full year, Rivian posted net loss of $4.74bn or $4.69 per share. The company’s revenue for the year totalled $4.97bn, an increase from $4.43bn in 2023.
The company experienced a “record” revenue of $1.7bn in the fourth quarter, up from $1.31bn in the prior-year period.
This growth was fuelled by the sale of regulatory credits, surge in software and services revenue, and higher R1 average selling prices due to the increased availability of its Tri-Motor offering.
Rivian anticipates that these improvements to continue to benefit the company in the long term and help it to achieve a “modest gross profit" this year.
In the fourth quarter, Rivian produced 12,727 vehicles at its manufacturing facility in Normal, Illinois in the US and delivered 14,183 vehicles.
For the full year of 2024, the company produced 49,476 vehicles and delivered 51,579.
Rivian has set a forecast for delivering between 46,000 and 51,000 units for 2025.
Capital expenditures for Rivian are expected to be between $1.6bn and $1.7bn this year, an increase from $1.41bn last year.
This is in preparation for the launch of its new "R2" midsize vehicles next year.
The company intends to idle its Normal auto plant during the second half of 2025 to retrofit the facility for the production of new vehicles, reported CNBC.
However, Rivian has noted that external factors, such as changes to government policies and regulations and a challenging demand environment, could impact its expectations for 2025.
Rivian founder and CEO RJ Scaringe 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.”
Recently, Rivian expanded the sales for its Rivian Commercial Van, which was originally designed for Amazon, to fleets of all sizes across the US.