It's been a difficult few years for the stock of Rivian Automotive (NASDAQ: RIVN), which has gone from hitting over $179 soon after it debuted in November 2021 to under $10 today.

Rivian has been making progress selling vehicles, as it more than doubled production and deliveries in 2023. However, the electric vehicle (EV) maker has been selling the vehicles at a loss, as demonstrated by its negative $2 billion in gross profit last year.

Rivian's gross profits are the difference between the price at which it sells its vehicles versus its cost to make them. This excludes any marketing, research and development, or corporate costs, and involves mostly the material and labor costs to make the vehicles. Rivian's negative gross margins are a sign that it does not currently have the scale and manufacturing efficiencies to compete with larger automakers.

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Source Fool.com