Rivian Sees Big Turning Point. Is It Time to Buy the Stock?
Rivian Automotive (NASDAQ: RIVN) has had no trouble selling its popular electric vehicles (EVs) since the company went public back in 2021. What it had been unable to do was sell its trucks and SUVs for more than it cost to make them. That all changed in 2024's fourth quarter when the company finally posted a positive gross margin.That was a big accomplishment, and it puts the young company on the road to becoming a more sustainable business. However, it still has a long way to go, and 2025 is likely to be both a transitional and transformative year. With that in mind, is this a good time to buy the stock?That first-ever quarterly gross profit Rivian just turned in was a modest $170 million. Its gross margin rate in Q4 was 9.8% compared to negative 46% a year ago. It generated $110 million in gross profits from its automobile segment and $60 million for its software and services segment. Q4 automotive segment margins were 7%, while software and service margins were 28%. Continue reading
Rivian Automotive (NASDAQ: RIVN) has had no trouble selling its popular electric vehicles (EVs) since the company went public back in 2021. What it had been unable to do was sell its trucks and SUVs for more than it cost to make them. That all changed in 2024's fourth quarter when the company finally posted a positive gross margin.
That was a big accomplishment, and it puts the young company on the road to becoming a more sustainable business. However, it still has a long way to go, and 2025 is likely to be both a transitional and transformative year. With that in mind, is this a good time to buy the stock?
That first-ever quarterly gross profit Rivian just turned in was a modest $170 million. Its gross margin rate in Q4 was 9.8% compared to negative 46% a year ago. It generated $110 million in gross profits from its automobile segment and $60 million for its software and services segment. Q4 automotive segment margins were 7%, while software and service margins were 28%.
