Rivian Automotive reported a steep decline in automotive revenue during the fourth quarter, with sales dropping 45% to $839 million. This sharp contraction comes as the electric vehicle maker faces ongoing challenges in scaling production and managing costs in a competitive market.

The company's automotive segment, which represents the bulk of its business, saw revenue fall from $1.53 billion in the year-ago period. Rivian has been working to ramp up production of its R1T pickup trucks and R1S SUVs while expanding its commercial van offerings for Amazon, though supply chain constraints and broader economic pressures continue to weigh on performance.

Despite the revenue decline, Rivian is pushing forward with strategic initiatives including its upcoming R2 platform and expansion of its manufacturing footprint. The company's ability to reverse this downward trend in automotive sales will be critical as it seeks to achieve profitability and compete with larger rivals in the EV space.