Rivian’s efforts to cut costs have brought it closer to profitability, but the company is warning about potential challenges in 2025, particularly due to uncertainty surrounding the new Trump administration.
On Thursday, the company revealed its financial results for the fourth quarter and full year of 2024, along with plans to deliver between 46,000 and 51,000 EVs in 2025. Rivian cautioned about potential impacts from changes in government policies and regulations, as well as a challenging demand environment, in a shareholder letter released alongside the results.
The company did not specify the nature of these changes, but there have been indications that the $7,500 federal EV tax credit might be at risk, among other potential policy shifts.
Rivian’s CFO, Claire McDonough, expressed optimism about working with the new administration and the Department of Energy and highlighted the company’s commitment to creating manufacturing jobs. However, she also acknowledged potential financial impacts from tariffs, loss of EV credits, and policy changes.
CEO RJ Scaringe affirmed Rivian’s alignment with the administration’s focus on maintaining U.S. leadership in technology and innovation, emphasizing the company’s investments in key areas like electronics, software, autonomy, and AI.
Throughout 2024, Rivian implemented cost-cutting strategies, including layoffs and product simplifications, to improve profitability. The company also made significant changes to drive down manufacturing costs and enhance its electric and software offerings.
These efforts translated into positive gross profit for Rivian in the final quarter of 2024, with a substantial portion coming from software and services revenue.
Rivian reported increases in revenue, particularly from vehicle sales and regulatory credits, as well as a growing contribution from software and services. The company’s future revenue potential is also tied to its software joint venture with Volkswagen Group.
Software-related revenue sources for Rivian include charging fees, subscriptions, repair services, and software development, indicating the company’s evolving business model.
This story has been updated with information from Rivian’s quarterly earnings call.
