📈 $RIVN: $170M Profit Breakthrough with R2 Gamble Ahead
Rivian achieves first-ever quarterly profit and secures $10 billion in funding while slashing production costs by $31,000 per vehicle - Can the EV maker sustain this momentum despite forecasting lower deliveries in 2025?
RIVN: RIVN $12.97
This week we're diving into Rivian Automotive, the electric vehicle maker that's trying to challenge Tesla's dominance.
After hitting a peak of $179 shortly after its 2021 IPO, Rivian's shares have crashed over 90% and currently trade at around $12. Despite this dramatic fall, recent developments suggest a potential path forward. Let's break down why Rivian is at a crucial inflection point.
First-Ever Positive Gross Profit
After years of burning through cash, Rivian finally achieved something remarkable in Q4 2024 – its first-ever positive gross profit of $170 million. This represents a dramatic turnaround from the $606 million loss in the same period last year.
What's especially impressive is that the company managed to slash $31,000 in production costs per vehicle compared to Q4 2023.
CEO RJ Scaringe emphasized that these cost improvements aren't just temporary, they're part of a broader strategy to prepare for mass-market vehicles. The R2, Rivian's upcoming mid-size SUV, is expected to have a bill of materials that's roughly half that of the current R1 models. With 95% of components already sourced for the R2, Rivian seems serious about transforming from a luxury EV maker into a mainstream competitor.