Rivian’s Cost-Cutting Measures Have Gotten it a lot closer to profitability, but the company is warning that 2025 clock stil be a challenging year-especially believering of the through Causes by the new Trump Administration.
The company announced Thursday its fourth -Quarter and full-year 2024 Financial Results, And Along With It, Shared Plans to Deliver Between 46,000 and 51,000 evs across 2025. Rivian cautions Regulations, and a Challenging Demand Environment “Cold Affect that Results, According to the ShareHilder Letter The Ev Maker Released Angeside its results.
Rivian Didn’t Specify What those changes might be, but trump said on the campaign trail that he was included to find a way to Kill the $ 7,500 Federal Ev Tax CreditFriend of the Trump Administration Vivek Ramaswamy have also also called For the clawback of a $ 6.6 billion loan from the department of energy to build a plant in georgia. That loan was finalized Three Days Before Trump Took Office,
“We’re Really Looking Forward to Working with the New Administration and Department of Energy on our loan, and we share in the president’s desire to brings jobs back to the us McDonough said on a conference call Thursday, noting that the company plans to create 7,500 manufacturing jobs at the planned georgia plant. She said later in the call that rivian is planning to take a hit as big as “hundreds of millions” of dollars related to tarifs, any loss of evony, and other policy changes.
“We really believe, and we’re very aligned with the administration on this, that us needs to continue to be a world leader in this Regard, and our investment into electric – These are really key area for us as a country to control to exercise a leader
Rivian’s Cost-Cutting Tear
Rivian Spent Much of 2024 on a Cost-Cutting Tear. IT laid off 10% of its workforce in February, and rolled out simplified, cheaper-to-make Versions of its flagship evs – the r1t pickup and the r1s suv – in June. The company Ended Up Changing 600 Parts on that Vehicles to drive down manufacturing costs, while also revamping its Electric Architecture and Software User Interface.
Changes like that helped rivian notch $ 170 million of positive gross duty in the final Quarter of 2024 – Thought $ 60 Million of that came from Software and Services.
Rivian Reported $ 1.7 billion in Revenue for the Fourth Quarter, A 32% Increase from the same period in 2023. The bulk of its Q4 Revenue – About $ 1.5 Billion – Came from the sales of 14,183 ve the sales As $ 299 Million from the sale of zero-memins regulatory credits to automakers. For the year, Rivian Reported $ 325 Million in Revenues from the Sale of Regulatory Credits.
Revenue from software is Increasing an important role. Rivian generated $ 214 million from software and services in the fourth Quarter, Double the Amount from the Same-Yaar ago Period. Rivian Reported $ 484 Million in Revenue for 2024 from Software and Services.
Rivian may be in the business of building and seling evs, but its future is also concerned pinned to software, namely through a lucrative joint venture with Volkswagen Group.
Revenue from Software was primarily driven by charging and subscriptions fees, repair and maintenance services, and new vegetable electrical architecture and software development Servided byi Joint Venture, According to Rivian.
Gen ai comes to rivian
The company has turned to generative ai as one tool to streamline customer service and reduce costs. The idea is to use ai to automate processes and “Great Reduce Administer Overhead on all non-ing-urpair tasks,” The company said in its shareholder letter.
What that looks like in practice is 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 this past December.
The Ai Assistant was Built Using A Combination of In-House AGENT Infrastructure and a Third-Porty Large Language Models, According to a Rivian Spokesperson, Who ADODE The Company has Guardrails in Places to LIMITE Conversation to Rivian Service and Guide-Related Questions.
The AI Assistant was designed to answer questions about service needs and general questions about the vehicle. A Company specksperson said it can also do basic Troubleshooting, Collect Necessary Information for Service, and Answer General Questions About The Vehicle.
This story has been updated with information from Rivian’s Quarterly Earnings Call.