Rivian, the electric vehicle manufacturer, will report its fourth quarter earnings for 2024 this Thursday after the market closes.
Expectations are high as the company aims to achieve its first positive gross profit after making aggressive cost cuts last year.
Despite facing a supply shortage that hindered its growth, Rivian has reaffirmed its commitment to achieving an improvement in profitability.
Rivian is on track to be profitable very soon
During the last quarter, Rivian delivered 14,183 vehicles, exceeding its annual forecasts of between 50,500 and 52,000 units, with a total of deliveries amounting to 51,579. Production reached 49,476 vehicles, meeting a revised target due to component shortages.
Rivian’s net losses decreased to $1.1 billion in the third quarter, and vehicle costs significantly dropped to $39,000, compared to $139,000 in 2022.
This improvement is due, in part, to advances in supply contracts and enhancements in its plants, where it is expected that in the last months of 2024, the company will achieve a “modest gross profit.”
Recently, Rivian established a joint venture with Volkswagen, valued at up to $5.8 billion, which could open new growth opportunities. Meanwhile, the company is preparing to launch its mid-size electric SUV, the R2, as well as other more affordable models, which will be vital for its long-term expansion.
However, Rivian faces challenges, including a federal loan of $6.6 billion that is now at risk due to a possible freeze by the new administration. Despite these obstacles, Rivian remains optimistic about the future and the potential of its new models to drive its growth and profitability.