Rivian’s cost reduction measures have accumulated it much closer to profitability, but the company warns that 2025 could still be a challenging year, especially due to the spiral of uncertainty caused by the new Trump administration.
The company announced On Thursday, their financial results of 2024 of fourth and full year, and together with it, shared plans to deliver between 46,000 and 51,000 EVs in 2025. Rivian warned that “changes in government policies and regulations, and a challenging demand environment “It could affect those results, according to the shareholder letter, the EV manufacturer published along with its results.
Rivian did not specify what those changes could be, but Trump said in the campaign that he was inclined to find a form of Kills the federal tax credit of $ 7,500 EV. Trump Vivek Ramaswamy Administration Friend He has also called for the nuclear of a loan of $ 6.6 billion of the energy department to build a plant in Georgia. That loan was finished three days before Trump assumed the position.
“We really want to work with the new administration and the department of energy of our loan, and we share the president’s desire to return jobs to the United States,” said Rivian’s financial director, Claire McDonough, at a telephone conference the telephone conference Thursday, noting that the company plans to create 7,500 manufacturing jobs at the planned Georgia plant. She later said in the call that Rivian plans to receive a success as great as “hundreds of millions” of dollars related to tariffs, any loss of EV credits and other changes in policies.
“We really believe, and we are very aligned with the administration about this, that the United States needs to remain a world leader in this regard, and our investment in electronics, in software, autonomy and Ia, these are really key the areas for us as a country To continue exercising a leadership position, ”said CEO RJ Scaringe in the call.
Rivian’s cost reduction tear
Rivian spent much of 2024 in a tear of cost reduction. He fired 10% of his workforce in February, and launched simplified and cheapest versions of his Ev Badge, the R1T truck and the SUV R1S, in June. The company ended up changing 600 pieces in these vehicles to reduce manufacturing costs, while renewing its electrical architecture and software user interface.
Changes such as those helped Rivian Notch $ 170 million positive gain in the last quarter of 2024, although $ 60 million come from software and services.
Rivian reported $ 1.7 billion in revenues for the fourth quarter, an increase of 32% since the same period in 2023. Most of its revenues in the fourth quarter, around $ 1.5 billion, came from the sale of 14,183 vehicles, vehicles, as well as $ 299 million of the sale of zero. -Missions Regulatory credits for car manufacturers. For the year, Rivian reported $ 325 million in revenues of the sale of regulatory credits.
Software income plays an important role more and more. Rivian generated $ 214 million from software and services in the fourth quarter, twice the amount of the period of the same year. Rivian reported $ 484 million in revenues for 2024 software and services.
Rivian can be in the business of construction and sale of electric vehicles, but his future is also largely set to software, namely through a lucrative joint venture with Volkswagen Group.
Software income was mainly promoted by loading rates and subscriptions, repair and maintenance services, and new services for the development of electrical architecture of vehicles and software development provided by the joint company, according to Rivian.
Gen Ai comes to Rivian
The company has resorted to generative AI as a tool to optimize customer service and reduce costs. The idea is to use AI to automate the processes and “largely reduce administrative expenses in all tasks that are not repaired,” said the company in its shareholders letter.
What seems in practice is an assistant of AI, or Chatbot, integrated into the Rivian application. The company launched a beta version in the Rivian mobile application for R1 customers last December.
The AI wizard was built using a combination of internal AI agent infrastructure and a third language models, according to a Rivian spokesman, who added that the company has railings to limit the conversation to the Rivian service and questions related to the guide.
The AI wizard was designed to answer questions about service needs and general questions about the vehicle. A company spokesman said you can also make a basic problem resolution, collect the information necessary for service and answer general questions about the vehicle.
This story has been updated with information on the quarterly gains of Rivian.