Rivian Achieves First Gross Profit but Faces Policy and Market Challenges

The EV maker reported a $110 million gross profit in Q4 2024, but looming tariffs and potential loss of EV tax credits could impact future growth.

Rivian reported its first-ever quarterly gross profit of $110 million in Q4 2024, a significant improvement from a $611 million gross loss in the same period the previous year.
The company attributed this milestone to production optimizations, a shift toward higher-margin vehicle models, and regulatory credit sales totaling $325 million for the year.
Rivian expects a modest gross profit for 2025, but potential policy shifts, including tariffs and the possible removal of the $7,500 EV tax credit, could cost the company hundreds of millions of dollars.
The automaker is pushing forward with cost-cutting measures, streamlining production, and developing its second-generation R2 platform, which aims to reduce material costs by 50%.
The fate of Rivian's $6.6 billion federal loan remains uncertain under the Trump administration, raising additional questions about the company's financial stability.