Rivian posted a gross profit for the first time in the fourth quarter of 2024, a key milestone for the electric vehicle startup as it works toward overall profitability. The company reported a gross profit of $170 million, largely attributed to cost reductions in producing its refreshed R1S and R1T models.
“The biggest part of this is due to the massive cost reduction brought by the refreshed R1S and R1T,” Rivian Chief Financial Officer Claire McDonough said during a Q&A session.
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Rivian managed to cut the cost of goods sold per vehicle by $31,000, though the savings did not translate into lower prices for customers. Instead, the reductions helped the company move closer to profitability.
The lower production costs stem from technological updates in Rivian’s 2025 models, including a new zonal electrical architecture, an optional lithium iron phosphate (LFP) battery for base trims, and in-house manufacturing of all drive units. The company also attributed cost savings to negotiations with suppliers.
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Beyond vehicle sales, Rivian’s software and services business contributed $60 million to the quarterly gross profit. This includes financing, insurance, maintenance, and the sale of certified pre-owned R1S and R1T models, which Rivian began offering in select states last year. The vehicles undergo a 130-point inspection and come with a factory warranty.
Looking ahead, Rivian is preparing to launch its next-generation R2 model in 2026, followed by the R3 and R3X. “That’s just the beginning,” McDonough said, adding that Rivian’s design studio has more developments in the pipeline. The company expects the R2 to cost half as much to produce as the R1 models and plans to export the vehicle to overseas markets once production ramps up.
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Rivian is also expanding its service network, with 30 additional service centers set to open this year, bringing the total to more than 100. The company currently operates over 600 mobile service vans across the U.S. and plans to increase that number as its customer base grows.
