Why Rivian Automotive Stock Is Sinking Today

Core Insights - Rivian Automotive's stock has experienced a decline following mixed earnings results and a new vehicle recall [1][4] Financial Performance - Rivian reported a gross profit of $170 million for Q4, marking the first positive figure for this metric [2] - The company posted an EBITDA loss of$277 million for Q4, which is a $729 million improvement compared to Q4 2023 [2] Guidance and Forecast - The 2025 guidance was disappointing, with expectations of a "modest" gross profit and an EBITDA loss projected between$1.7 billion and $1.9 billion, although this reflects an improvement over 2024 [3] - The vehicle delivery forecast for 2025 is set at 46,000 units, a decrease from the 51,000 units expected in 2024 [3] Recall Announcement - Rivian announced a recall of over 17,000 vehicles, specifically the 2025 versions of the R1S SUV and R1T pickup trucks, due to a low beam failure issue in cold weather [4] - The company will replace the headlights at no cost to customers, although it may impact the bottom line [5]