Rivian’s recent cost-cutting initiatives have significantly advanced its journey towards profitability, yet the company anticipates that 2025 may present substantial challenges. This is primarily due to uncertainties stemming from the policies of the newly established Trump Administration.
On Thursday, Rivian disclosed its financial results for the fourth quarter and the entire year of 2024. Alongside these disclosures, it outlined plans to deliver between 46,000 and 51,000 electric vehicles in 2025. However, Rivian cautioned that “changes to government policies and regulations, and a challenging demand environment” might impact these projections, as noted in the shareholder letter accompanying the financial results.
Although Rivian did not specify which changes were anticipated, statements made by Trump during his campaign indicated an inclination to abolish the $7,500 federal EV tax credit. Vivek Ramaswamy, a supporter of the Trump administration, has advocated for the Department of Energy’s $6.6 billion loan to Rivian to be rescinded. This loan was finalized shortly before the Trump administration commenced.
Throughout 2024, Rivian focused extensively on reducing costs. This included a 10% reduction in its workforce in February and the introduction of simpler, cost-effective versions of its primary electric vehicles—the R1T pickup and the R1S SUV—in June. The company modified 600 parts in these vehicles to lower manufacturing expenses while also revamping its electric architecture and software user interface.
These strategic changes enabled Rivian to achieve $170 million in positive gross profit during the final quarter of 2024, with $60 million of this originating from software and services.
Rivian reported $1.7 billion in revenue for the fourth quarter, marking a 32% rise compared to the same period in 2023. The majority of this revenue—around $1.5 billion—was generated from the sale of 14,183 vehicles, accompanied by $299 million from the sale of zero-emission regulatory credits to automakers. In 2024, Rivian’s revenue from the sale of regulatory credits amounted to $325 million.
Software revenue is becoming increasingly vital for Rivian. In the fourth quarter, the company earned $214 million from software and services, which is double the amount from the same quarter the previous year. For 2024, Rivian reported $484 million in revenue from software and services.
While Rivian primarily focuses on manufacturing and selling electric vehicles, its future notably depends on software, particularly through a profitable partnership with Volkswagen Group. Revenue from software was largely driven by charging and subscription fees, repair and maintenance services, and new vehicle electrical architecture and software development services provided by the joint venture, as stated by Rivian.
