Rivian’s cost reduction measures have come much closer to profitability, but the company warns that 2025 could still be a challenging year-especially because of the uncertainty caused by the new Trump management.
The Company announced Thursday was the financial results of the fourth quarter and the year in 2024 and together with this fact plans to deliver between 46,000 and 51,000 EVs in 2025. According to the results, the EV manufacturer published the shareholder letter together with its results.
Rivian did not indicate what these changes could be, but Trump said on the campaign path that he was inclined to find a way Kill the tax credit for EV tax credit in the amount of $ 7,500. Friend of the Trump administration Vivek Ramaswamy also called For the completion of a loan of 6.6 billion US dollars by the Ministry of Energy to build a work in Georgia. This loan was completed Three days before Trump’s office.
“We are very much looking forward to working with the new administration and the Department of Energy in our loan, and we share the president’s request to bring jobs back to the US wants to set up for manufacturing work. She later said in the call that Rivian plans to take a goal of up to “hundreds of millions” of dollars in connection with tariffs, any losses of EV loans and other political changes.
“We really believe, and we are very in line with the administration that the United States must continue to be leading worldwide in this regard, and our investment in electronics, software, in autonomy and AI – these are really the key. Areas for us as a country to continue to practice a leadership position, ”said CEO RJ Scaringe on the call.
Rivian’s cost sensation
Rivian spent a large part of 2024 for reducing costs. It Delayed 10% of his workforce in February and simplified, simplified, cheaper to make Versions of his flagship – the R1T pickup and the R1S -SUV – in June. The company ultimately changed 600 parts of these vehicles to reduce the manufacturing costs, and at the same time revised its electrical architecture and software user interface.
Changes like this helped Rivian in the last quarter of 2024 a positive gross profit of 170 million US dollars -although 60 million US dollars came from software and services.
In the fourth quarter, Rivian achieved sales of 1.7 billion US dollars, an increase of 32% compared to the same period 2023. The majority of his turnover in the fourth quarter -around 1.5 billion US emissions to car manufacturers. For the year, Rivian generated sales of 325 million US dollars from the sale of regulatory loans.
Income from the software is increasingly playing an important role. Rivian generated $ 214 million from software and services in the fourth quarter, twice as high as before the previous year. Rivian achieved sales of 484 million US dollars for 2024 from software and services.
Rivian may be in the building and sales of EVS, but his future is also largely recorded on software, namely a lucrative joint venture with Volkswagen Group.
The income from the software was mainly driven by fees for fees, repairs and maintenance of fees and subscriptions, and according to Rivian.
Gen ai comes to Rivian
The company has turned to generative AI as a tool for rationalizing customer service and reducing costs. The idea is to use AI to automate processes and “strongly reduce the administrative overhead in all tasks without repair,” said the company in its shareholder letter.
What this looks like in practice is a AI assistant or chat bot that is integrated into the Rivian app. The company introduced a beta version in the Rivian Mobile app for R1 customers last December.
The AI assistant was created using a combination of in-house AI agent infrastructure and large language models by third-party providers. .
The AI assistant was developed to answer questions about service requirements and general questions about the vehicle. A company spokesman said that he could also carry out basic error, collect the necessary information for the service and answer general questions about the vehicle.
This story was updated with information from Rivian’s quarterly result.
