Rivian’s cost-saving measures have brought it a lot closer to profitability, but the company warns that 2025 could still be a challenging year, especially because of the wreath of uncertainty caused by the new Trump administration.
The company announced Thursday are financial results in the fourth quarter and the full year 2024, and in addition, she shared plans to deliver between 46,000 and 51,000 EVs in 2025. Rivian warned Rivianus that “changes in government policy and regulations, and a challenging demand environment” can influence results, according to the shareholders letter, the EV -maker released his results in addition to his results.
Rivian did not specify what those changes could be, but Trump said on the campaign track that he was inclined to find a way Death the federal EV -tax credit of $ 7,500. Friend of the Trump administration Vivek Ramaswamy has also called For the Clawback of a Loan of $ 6.6 billion from the Ministry of Energy to build a factory in Georgia. That loan was completed for three days before Trump took office.
“We are really looking forward to working with the new administration and the Ministry of Energy on our loan, and we share in the desire of the president to bring jobs back to the US,” said Rivian’s Chief Financial Officer Claire McDonough Thursday at a conference call, comment that the company is planning to create 7,500 production paths at the planned Georgia factory. She later said in the call that Rivian is planning to take a hit as large as “hundreds of millions of” dollars with regard to rates, loss of EV -credits and other policy changes.
“We really believe, and we are very tailored to the administration that the US must remain a world leader in this regard and our investment in electronics, in software, in autonomy and AI – these are really the key areas for us as us Country to practice a leading position, “said CEO RJ Scaringe on the call.
Rivian’s cost -saving tear
Rivian spent a large part of 2024 on a cost -saving tear. It fired 10% of his workforce in February and rolled out simplified, cheaper-to-make versions of his flagship EV’s-de R1t-pick-up and the R1S SUV-in June. The company eventually changed 600 parts to those vehicles to lower production costs, while it also renewed its electrical architecture and software user interface.
Changes such as they helped Rivian Notch $ 170 million positive gross profit in the last quarter of 2024 – although $ 60 million of them came from software and services.
Rivian reported $ 1.7 billion in income for the fourth quarter, an increase of 32% compared to the same period in 2023. Most of the Q4 turnover – about $ 1.5 billion – came from the sale of 14,183 vehicles and $ 299 million from the sale of zero emissions regulatory credits to car manufacturers. For the year, Rivian reported $ 325 million in income from the sale of legal credits.
Software income is increasingly playing an important role. Rivian generated $ 214 million from software and services in the fourth quarter, double the amount from the same year ago. Rivian reported $ 484 million in income for 2024 from software and services.
Rivian may be busy building and selling EVs, but its future is also largely attached to software, namely via a lucrative joint venture with Volkswagen Group.
Proceeds from software were mainly driven by cost and subscriptions for charging and subscriptions, repair and maintenance services and new vehicle Electrical Architecture and Software Development Services supplied by the Joint Venture, according to Rivian.
Gen AI comes to Rivianus
The company has used to generative AI as one tool to streamline customer service and to lower costs. The idea is to use AI to automate processes and “significantly reduce the administrative overhead on all non-repair tasks,” the company said in its shareholders letter.
What in practice looks like an AI assistant or chatbot, integrated into the Rivian app. The company rolled out a beta version in the Rivian mobile app for R1 customers last December.
The AI assistant was built using a combination of internal AI-agent infrastructure and an external large language models, according to a Rivian spokesperson, who adds to it.
The AI assistant is designed to answer questions about service needs and general questions about the vehicle. A company spokesperson said it can also do fundamental problem solving, collect the necessary information for service and answer general questions about the vehicle.
This story has been updated with information from Rivian’s quarterly call.
