Over the past three years, Rivian’s revenue has grown at a compound annual growth rate (CAGR) of nearly 350%. However, during that time, the company generated roughly -$15 billion in free cash flow (FCF). While performance improved in 2024, Rivian still has a long way to go.
Much of the cash burn stems from the company only recently achieving a positive gross margin on vehicle sales. Historically, Rivian didn’t charge enough for its cars to cover production costs—a strategy that fueled revenue growth but came at the expense of positive FCF.
