Latest news with #AdvancedTechnologyVehiclesManufacturing
Yahoo
06-05-2025
- Automotive
- Yahoo
Rivian Q1 earnings preview: Will tariffs push Rivian deeper into the red?
Rivian (RIVN) will report first quarter earnings after the bell on Tuesday as the pure-play EV maker shows investors whether it is still on the long path toward profitability as President Trump's tariffs on auto parts start to bite. For the quarter, Rivian is expected to report revenue of $981.21 million, a steep drop compared to the $1.73 billion reported last quarter and the $1.204 billion a year ago. The company is expected to post an adjusted EPS loss of $0.79 with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $546.4 million. A big part of the drop in Q1 revenue resulted from the company posting fewer deliveries due to seasonality and the effects of the wildfires on the state of California, where many Rivian purchases are made. The company said in early April that it produced 14,611 vehicles at its manufacturing facility in Normal, Illinois, and delivered 8,640 vehicles, in line with its expectations, and reaffirmed its 2025 target of deliveries between 46,000 and 51,000. Looking ahead, analysts will be interested to see if Rivian can repeat a notable feat from Q4, where the company posted a "gross profit" for the quarter, driven by "improvements in variable costs, revenue per delivered unit, and fixed costs." Those continued improvements in cost-cutting will now come face to face with Trump's auto tariffs, which will raise the company's bill of materials (BOM) figures for each EV sold. Internal components, battery cells, and even steel and aluminum tariffs will likely hit Rivian, though as a US producer, it will have the ability to get "offsets" for some tariffs on foreign-made parts. Read more: The latest news and updates on Trump's tariffs In terms of guidance, Rivian previously issued a 2025 full-year adjusted EBITDA loss projection in the range of $1.7 billion to $1.9 billion. As with many other automakers, Trump's tariffs are making past projections unreliable, and most expect Rivian to withdraw its guidance until more tariff clarity is reached. Of importance is the future of United States-Mexico-Canada Agreement (USMCA) parts and how long those parts will be exempt from tariffs. The administration is expected to give guidance on that shortly. Rivian's production ramp-up of its upcoming R2 will be on the agenda as well. The company is targeting a 2026 launch, and much of the factory build-out is dependent on a "conditional commitment" it won from the Department of Energy (DOE) for a $6.6 billion loan. The loan, part of the DOE's Advanced Technology Vehicles Manufacturing program, would support the construction of Rivian's upcoming assembly plant outside of Atlanta.
The Guardian
29-04-2025
- Business
- The Guardian
Musk's companies got billions from the government. Now he's pulling up the ladder behind him
'Pulling up the ladder after you've climbed it' refers to a familiar social pattern: achieving success thanks to certain advantages – then working to dismantle those very structures, denying others the same opportunities. Many have cited immigrant Trump voters as an example; some who have benefited from relatively open immigration policies now advocate for stricter border controls and cuts to legal immigration. The American upper middle class have been dubbed 'dream hoarders' who, after achieving success, work to keep the bottom 80% down with a variety of subtle barriers, such as legacy college admissions and exclusionary zoning. Few individuals embody ladder-pulling more starkly than Elon Musk. Though he has been lauded as a self-made innovator and visionary entrepreneur, Musk's empire only exists thanks to the support of massive public investment. Yet as leader of the 'department of government efficiency' (Doge), he has directed and overseen the dismantling of the very government programs, regulations and subsidies that enabled his rise. Musk's companies, particularly Tesla, SpaceX, and SolarCity, have benefited from an estimated $38bn in public support, including government loans, tax credits, and federal contracts. In 2010, Tesla received a $465m low-interest loan from the Department of Energy's Advanced Technology Vehicles Manufacturing (ATVM) program. That funding was critical to keeping Tesla alive – without it, insiders later told the Washington Post, the company would have gone under. The success of Tesla's flagship Model S, the expansion of its manufacturing base, and even the illusion of its early profitability were all bolstered by public money. Zero-emission vehicle credits and the $7,500 federal EV tax credit were equally pivotal. Tesla earned billions by selling regulatory credits to legacy automakers struggling to meet emissions standards. In the first nine months of 2024 alone, 43% of Tesla's net income came from these credits. The company also profited from California's emissions credit system through a scheme involving phantom battery-swapping infrastructure – credits that provided hundreds of millions in additional income. Despite this, Musk now derides subsidies and regulations as government overreach and has used Doge to slash many of the same types of programs – such as renewable energy incentives and federal climate investments – that once saved his own companies from bankruptcy. These were essential to Tesla's success, and now he wants to limit other entrepreneurs and businesses from the same opportunities. While Musk claims he aims to eliminate 'waste', his companies continue to benefit from government contracts. SpaceX has received more than $17bn in federal awards since 2015, including lucrative Nasa contracts and taxpayer-funded Starlink deployments in Ukraine. The irony could not be more profound: Musk attacks the legitimacy of public spending even as his empire remains one of its top beneficiaries. The craven self-interest that drives this behavior is particularly on display when considering Musk's newfound advocacy for policy built on climate denial. Tesla was conceived in the shadow of climate change – and succeeded largely because US federal and state governments treated climate as an emergency. Regulatory frameworks created demand for EVs. Emissions credit markets made Tesla profitable. Yet Musk has now aligned himself with climate deniers like Vivek Ramaswamy and Donald Trump, dismissed environmental, social and governance (ESG) concerns as 'the devil', and supported deregulation plans that could allow polluting industries to ignore environmental rules altogether and make it harder for other EV companies to grow. This is not just hypocrisy – it's a calculated repositioning: he made his fortune as a climate-focused entrepreneur, and now he aims to protect his personal and political power through climate skepticism. Elon Musk did not succeed in a vacuum. In America, we are inclined to celebrate the heroic individual entrepreneur while ignoring – and even downplaying – that massive public support was the foundation of their success. Consider the iPhone: nearly all of its core technologies, from GPS and touchscreen displays to the internet itself, were publicly funded. Covid vaccines and the pharmaceutical industry, too, have relied heavily on NIH-funded research. And yet, Musk, Steve Jobs, and other tech titans are cast as heroic innovators, while the state is derided as inefficient or meddlesome – even as it continues to underwrite the very innovations that fuel the economy. Further, while the risks of developing these innovations are mitigated by public funding, the profits they create are almost entirely privatized. If American taxpayers had taken equity in Tesla for their $465m investment, it is estimated such a stake would be worth over $300bn today. Instead, it is Musk alone who has enjoyed such wealth. To deny that is to erase the role of taxpayers, government scientists, and policy architects who built the foundation upon which Tesla, SpaceX and many innovative industries rest. But Musk's recent efforts – whether gutting climate policy, leading anti-regulatory initiatives, or supporting anti-democratic actors – represent not just a betrayal of that legacy, but a systemic effort to pull up the ladder and rewrite the rules to benefit only himself. Ultimately Musk's story is a warning: those who climb the ladder with public help are inclined to later destroy the mechanisms that led to their success. For Musk to admit that he had substantial help to become the world's richest man would undermine the lone genius narrative that has granted him astonishing power with impunity. By pulling up the ladder, 'lone geniuses' don't just block others from the same opportunities, but also undermine the very idea of collective progress and investment in the public good. The outcome will be the erosion of future innovation, and ultimately, a well-functioning society. Christopher Marquis is the Sinyi professor of management at the University of Cambridge and author of The Profiteers: How Business Privatizes Profits and Socializes Costs.
Yahoo
06-04-2025
- Automotive
- Yahoo
Elon Musk Paid Off Tesla's $465 Million Government Loan 9 Years Early With Interest, Penalties —And a Message to Taxpayers: 'I Hope We Did You Proud'
A 2014 "60 Minutes" interview with Elon Musk is suddenly back in rotation on X and it's not hard to see why. With headlines swirling about Musk backing away from his role at the Department of Government Efficiency and calls for federal spending cuts growing louder, the clip is a timely throwback to a different kind of Musk headline—one where he wasn't slashing budgets but writing checks to the government. In the resurfaced interview, journalist Scott Pelley zeroed in on Tesla's taxpayer-funded boost. "Taxpayers essentially loaned you, Tesla, almost $500 million. How much of that do you still owe?" Musk, calm as ever, replied, "We paid the whole loan back with interest and a prepayment penalty last year." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — . Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – When asked why he paid the loan off early, Musk said the taxpayers had supported Tesla, so, as he put it, "we ought to repay them as soon as we can." He added, "Since we had the ability to do it and the stock markets were good, let's pay it back with interest and a thank you note, by the way. I said, 'really appreciate it. Thank you.'" That's not just talk. In 2010, Tesla received a $465 million loan from the Department of Energy's Advanced Technology Vehicles Manufacturing program. It was part of a broader effort to jumpstart clean energy and EV innovation in the U.S. Trending: In May 2013, Tesla wrote a check to the U.S. government for the full balance—nine years ahead of schedule—making it the first American automaker to fully repay its ATVM loan. And they didn't just slide the check under the door. The repayment came with interest and a prepayment penalty, signaling Musk wasn't looking for a discount or an exit ramp. Even more notable? The thank-you note. "I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the program," Musk said in a statement in 2013, "and particularly the American taxpayer from whom these funds originate. I hope we did you proud."That line alone could be a headline in 2025. Because these days, Musk is associated more with government belt-tightening than borrowing. As a leader of DOGE, he's been at the helm of a controversial crackdown on federal spending—that has resulted in the cutting more than 280,000 jobs and the trimming department budgets across the board. But now, reports suggest Musk is stepping back from that post, citing the need to refocus on his own companies. With tariffs looming and funding debates heating up, the clip is more than nostalgia—it's a reminder that Musk has played nearly every position on the public funding field: borrower, taxpayer, and budget-slasher-in-chief. So yes, he had almost a full decade left to pay off Tesla's loan. But in true Musk fashion, he didn't wait around. And he left a thank-you note when he left. Read Next: BlackRock is calling 2025 the year of alternative assets. Have $200K saved? UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Elon Musk Paid Off Tesla's $465 Million Government Loan 9 Years Early With Interest, Penalties —And a Message to Taxpayers: 'I Hope We Did You Proud' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
20-02-2025
- Automotive
- Yahoo
Rivian posts $170 million 'gross profit' in Q4, sees losses decreasing as variable costs improve
Rivian (RIVN) reported mixed fourth quarter results after the bell on Thursday, but came through on its goal of posting a "gross profit" for the quarter, with a smaller than expected full-year 2024 EBITDA (earnings before interest, taxes, depreciation, and amortization) loss to boot. The company also sees a smaller loss in 2025 compared to a year ago. Rivian reported a gross profit of $170 million in the fourth quarter, primarily driven by "improvements in variable costs, revenue per delivered unit, and fixed costs," the company said in a statement. '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," Rivian CEO RJ Scaringe said in a statement. "Our focus on cost efficiency across the business is critical for the launch of our mass market product, R2. The R2 bill of materials is approximately 95% sourced and is expected to be approximately half that of the improved R1 bill of materials." Rivian stock was up over 3% in after-hours trading. For the quarter, Rivian reported revenue of $1.734 billion vs $1.386 billion per Bloomberg consensus, 32% higher than the $1.315 billion reported a year ago. The company reported an adjusted EPS loss of $0.70, missing estimates of $0.65, with an adjusted EBITDA loss of $277 million, better than the $399.8 million expected. For the year 2024, Rivian posted an adjusted EBITDA loss of $2.689 billion, lower than the $2.87 billion loss projected last quarter, and an improvement compared to the $3,789 million loss from a year ago. In terms of guidance, Rivian sees its 2025 full-year adjusted EBITDA loss in the range of $1.7 billion to $1.9 billion, with vehicle deliveries coming in between 46,000 - 51,000 vehicles. In early January, the company said it produced 49,476 vehicles and delivered 51,579 in 2024. In Q4, Rivian produced 12,727 vehicles and delivered 14,183 vehicles. Rivian said it had $5.294 billion in cash and cash equivalents, down from the $7.857 billion it had a year ago. The fourth quarter was an interesting one for Rivian. The company announced an expansion of its partnership with Volkswagen (VWAGY) in November, with the German automaker pouring more money into a joint venture. The joint venture, announced back in June, will use Rivian's electrical architecture — known as "zonal architecture" — and accompanying software stack to enable the launch of Rivian's upcoming midsize R2 SUV in the first half of 2026. Read more: Are electric cars more expensive to insure? In November, Rivian also revealed that it won a "conditional commitment" from the Department of Energy (DOE) for a $6.6 billion loan, highlighting Rivian's improving capital condition. The loan, part of the DOE's Advanced Technology Vehicles Manufacturing (ATVM) program, would support the construction of Rivian's upcoming assembly plant located outside of Atlanta. The new Trump White House, however, and the Department of Government Efficiency (DOGE) say they will scrutinize the deal, potentially putting the DOE loan to Rivian in limbo. Another big wild card on the regulatory front is the status of the federal EV tax credit, which the Trump White House and Republican Party have indicated may be repealed. Pure-play automakers like Rivian, Lucid (LCID), and Tesla (TSLA) could be most affected by the tax credit's removal. Finally, earlier this month Rivian said it would open up orders for its EDV commercial delivery van, which could open another revenue stream for a company looking to scale up, grow revenue, and cut costs. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
Yahoo
20-02-2025
- Automotive
- Yahoo
Rivian Q4 earnings preview: Expectations for 'modest gross profit,' cost control top of mind for investors
Rivian (RIVN) will report fourth quarter and full-year results after the bell on Wednesday, as investors look to see whether the pure-play adventure EV maker can limit future losses and post a "modest gross profit" for the quarter, as projected. For the quarter, Rivian is expected to report revenue of $1.386 billion per Bloomberg consensus, up from the $874 million reported last quarter, around 5.4% higher than the $1.315 billion reported a year ago. The company is expected to report an adjusted EPS loss of $0.65, with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $399.8 million. Though Rivian increased its full-year adjusted EBITDA loss for the year last quarter ($2.87 billion from $2.8 billion), it still sees a "modest gross profit" coming in the fourth quarter. The company also maintained its annual production guidance of 47,000 to 49,000 units, revealing in early January that it produced 49,476 vehicles and delivered 51,579. In Q4, Rivian produced 12,727 vehicles and delivered 14,183 vehicles. The fourth quarter was an interesting one for Rivian. The company announced an expansion of its partnership with Volkswagen (VWAGY) in November, with the German automaker pouring more money into a joint venture. The joint venture, announced back in June, will use Rivian's electrical architecture — known as "zonal architecture" — and accompanying software stack to enable the launch of Rivian's upcoming midsize R2 SUV in the first half of 2026. Read more: Are electric cars more expensive to insure? In November, Rivian also revealed that it won a "conditional commitment" from the Department of Energy (DOE) for a $6.6 billion loan, highlighting Rivian's improving capital condition. The loan, part of the DOE's Advanced Technology Vehicles Manufacturing (ATVM) program, would support the construction of Rivian's upcoming assembly plant located outside of Atlanta. The new Trump White House, however, and the Department of Government Efficiency (DOGE) say they will scrutinize the deal, potentially putting the DOE loan to Rivian in limbo. Another big wild card on the regulatory front is the status of the federal EV tax credit, which the Trump White House and Republican Party have indicated may be repealed. Pure-play automakers like Rivian, Lucid (LCID), and Tesla (TSLA) could be most affected by the tax credit's removal. Finally, earlier this month Rivian said it would open up orders for its EDV commercial delivery van, which could open another revenue stream for a company looking to scale up, grow revenue, and cut costs. "We'll be looking at management's demand expectations for FY25, w/ current estimates forecasting incremental YoY growth, alongside further updates to the GA plant loan/timeline and the new EDV commercialization," said Truist analyst Jordan Levy in a recent note. Levy has a Hold rating and $14 price target for Rivian. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
