Rivian's weak sales outlook shows 'real demand issue' for EVs
Rivian (RIVN) shares fall after the electric vehicle (EV) maker said it expects fewer deliveries in 2025 than it did in 2024. CFRA analyst Garrett Nelson joins Morning Brief with Seana Smith and Brad Smith to discuss Rivian's fourth quarter results, in which the auto company post revenue of $1.73 billion and a narrower-than-expected loss of $0.46 per share. "The quarter was a positive. They beat on the bottom line ... This was really driven by software and services revenue, which is their agreement, the [joint venture] JV agreement that they recently signed with Volkswagen (VWAGY)," Nelson says. He explains the "very high margin revenue stream" enabled Rivian to "generate a positive gross margin overall" during the quarter, which "is a milestone." "The negative was the 2025 guidance, and I think that's much more important," the analyst says, adding, "There's a real demand issue here [as] we've seen EV growth slowing." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.