Rivian Is Aiming for Positive Gross Profit in 2024. Here's Why That's a Big Deal -- and Why It Isn't
One of the many bullish sentiments for Rivian (NASDAQ: RIVN) investors over the past year has been that the company is aiming to be gross-profit positive this year -- almost certainly toward the end of 2024. Why is that a big deal, and what does it really mean for Rivian investors hoping to see a surging stock price?
Pens and paper out! We're cracking open the quarterly earnings report, the 10-Q, and going back to school to show what positive gross profit means, doesn't mean, and why it matters.
Under the consolidated statements of operations, you'll see that gross profit is incredibly simple. It's simply what's left after you take the cost of revenues (also known as cost of goods sold) from revenues. From year to year, you'll see the cost of revenues remains more stagnant as fixed costs remain, while revenues will soar once production accelerates.
Source Fool.com
