Rivian Automotive Inc. RIVN shares rose over 5% in after-hours trading Wednesday before pulling back, despite delivering conservative 2025 guidance, as strong regulatory credit sales helped the electric vehicle maker beat fourth-quarter expectations.
What Happened: The Future Fund Managing Partner Gary Black expressed surprise at the stock’s positive reaction, noting on X that the “4Q gross profit beat [was] driven by one-time reg credit sales” amid “clearly weak FY’25 guidance.”
The EV manufacturer reported record quarterly revenue of $1.73 billion, surpassing analyst estimates of $1.4 billion, while posting an adjusted loss of 46 cents per share, better than the expected 65-cent loss. Rivian achieved a fourth-quarter gross profit of $170 million, largely driven by $299 million in regulatory credit sales.
“This quarter we achieved positive gross profit and removed $31,000 in automotive cost of goods sold per vehicle delivered in Q4 2024 relative to Q4 2023,” said Rivian CEO RJ Scaringe. “Our focus on cost efficiency across the business is critical for the launch of our mass market product.”
However, the company’s 2025 outlook fell short of Wall Street expectations, projecting 46,000 to 51,000 vehicle deliveries compared to analysts’ forecast of 54,900. Rivian expects adjusted EBITDA losses between $1.7 billion and $1.9 billion, with predictions of only “modest” gross profit for the year.
Why It Matters: The guidance comes amid uncertainty surrounding Rivian’s $6.6 billion federal loan for its Georgia manufacturing plant, which is under review by President Donald Trump‘s administration. The facility, planned to produce the company’s more affordable R2 and R3 vehicles, aims to reach an annual production capacity of 400,000 EVs by 2028.
Rivian closed several strategic moves in the quarter, including finalizing a joint venture with Volkswagen AG VWAGY worth up to $5.8 billion and opening its commercial electric van sales beyond Amazon.com Inc.
Price Action: Rivian closed at $13.61, down 2.30%. After hours, it rose 0.44%. The stock is up 2.72% year to date but down 14.35% in the past year, according to data from Benzinga Pro.
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