Rivian had a roller coaster of a year, epitomized by billion-dollar announcements, new electric vehicle reveals, continued production issues and the delay — and apparent revival — of its $5 billion Georgia factory plans.
While the California-based automaker made plenty of news in 2024, the year’s last three months thrust the startup’s Peach State plans back into the national spotlight. The company finalized a joint venture with Volkswagen that could be valued at up to $5.8 billion and is poised to receive a nearly $6 billion federal loan to build its promised factory an hour east of Atlanta.
Amid those splashy announcements, the automaker is still building vehicles at its sole factory in Illinois. Rivian released its fourth quarter production and delivery figures Friday morning, capping off a year that could prove pivotal for the company’s long-term future and manufacturing capabilities.
Here is what you need to know:
Overcoming ‘production disruption’
Rivian produced 12,727 vehicles during the last three months of the year, a 3% decrease from the third quarter and a 27% decrease from the fourth quarter a year ago.
The company built 49,476 vehicles during 2024, slightly exceeding its revised yearlong production goal of between 47,000 and 49,000 vehicles. The automaker lowered its original goal of 57,000 in October after a disappointing third quarter hampered by a “production disruption” at its Illinois plant.
The issue was spurred by a miscommunication between Rivian and one of its parts suppliers, Essex Furukawa, according to a Bloomberg report. A Friday news release said that shortage “is no longer a constraint on Rivian’s production.”
Credit: RON JOHNSON
Credit: RON JOHNSON
The prior goal of 57,000 vehicles would have roughly matched the startup’s manufacturing figures from 2023. The Illinois factory has a production capacity of 150,000 vehicles per year, about triple its current output.
Delivering more EVs
While Rivian works to improve its manufacturing processes, it increased the number of customers who picked up new EVs.
The company delivered 14,183 vehicles during the past three months, a 2% increase from the same time last year and a 42% increase from the prior quarter. The fourth quarter saw Rivian’s second-busiest delivery quarter in the company’s history, just shy of the third quarter of 2023.
Deliveries peaked in the third quarter of 2023, which came just before EV manufacturers — namely Tesla — saw multiple down quarters of slowing demand. Tesla reported Thursday its global deliveries dipped by 1%, the first time annual deliveries shrunk for the U.S. industry leader.
While EV sales in the U.S. have continued to increase, they have not met industry expectations, prompting some automakers to slow down their EV transition plans.
A supercharged loan
In March, Rivian announced it was pumping the brakes on its factory plans in southern Morgan and Walton counties.
At the time, Rivian said it put its Georgia plans on hold and instead planned to start production of a smaller and cheaper crossover, known as the R2, at its Illinois factory. The pause was billed as a cost-saving measure.
Rivian said it would start expand production of R2 in Georgia and two other models later, and would still meet its promise to create 7,500 jobs and build the $5 billion plant by 2030.
Credit: Miguel Martinez
Credit: Miguel Martinez
Behind the scenes, Rivian was working on a new funding source.
President Joe Biden’s administration in November gave preliminary approval to a nearly $6 billion construction loan through the U.S. Department of Energy. Rivian still must meet undisclosed environmental, financial and legal conditions to secure the funding, but if finalized, the loan would be the second-largest ever doled out by the DOE’s Advanced Technology Vehicles Manufacturing program.
With the loan, Rivian said it plans to begin EV production in Georgia in 2028, but did not share a timeline for resuming construction at the site. If finalized before Donald Trump’s inauguration on Jan. 20, experts say it’s unlikely the loan can be clawed back, although several Trump allies have criticized it.
VW inks partnership
Rivian joined forces with German automobile giant Volkswagen in November to finalize a joint software venture that aims to provide some juice to both automakers.
The $5.8 billion deal established a new entity helmed by top Rivian and VW officials to develop software for both company’s next-generation EVs. It provides VW with access to Rivian’s technology platform, while providing Rivian with a new source of capital — with VW now a major shareholder — as it aims to make the jump to being a profitable company.
Credit: Courtesy Rivian and Volkswagen Group
Credit: Courtesy Rivian and Volkswagen Group
Rivian has steadily trimmed its losses throughout the first three quarters of 2024, but it has still bled more than $1 billion each quarter. Company leaders said in November they were on track for positive gross profit — not necessarily net profit — for the fourth quarter.
Rivian said it will release its fourth quarter financial results Feb. 20 before holding a call with investors.
Cox Enterprises, the owner of The Atlanta Journal-Constitution and Cox Automotive, also owns a 3% stake in Rivian.
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