(Reuters) – Rivian on Friday beat analysts’ expectations for fourth-quarter deliveries and said its production was no longer constrained by a component shortage, a positive sign for the electric vehicle maker as it looks to post its first profit.

Shares of the California-based company rose nearly 6% in premarket trading. The stock lost more than 40% of its value in 2024.

The shortage of parts used in its R1 SUV and R1T pickups and vans began in the third quarter and forced Rivian to cut its annual production target in October.

“The previously discussed lack of a common component on the R1 and RCV platforms no longer represents a barrier to Rivian production,” the company said Friday.

Rivian delivered 14,183 vehicles in the three months ended Dec. 31, compared with estimates of 13,472, according to 15 analysts surveyed by Visible Alpha.

That was a 42% increase from the previous quarter and marked Rivian’s highest shipments in more than a year, even as Amazon.com, its largest backer, took fewer shipments in the fourth quarter due to its focus on holiday sales.

Rivian produced 12,727 vehicles in the quarter, compared to estimates of 11,398 units.

For 2024, production was 49,476 vehicles, down about 13% year over year but above the company’s lowered target of 47,000 to 49,000 units.

Rivian significantly cut costs by renegotiating supplier contracts and redesigning its manufacturing processes to generate gross profit in the fourth quarter. Additionally, the company last year entered into a technology joint venture with German automaker Volkswagen that will represent a $5 billion lifeline.

Electric vehicle makers are grappling with slowing demand as higher borrowing costs push buyers toward cheaper gasoline-powered hybrid vehicles and legacy automakers focus on introducing electric vehicles.

Larger rival Tesla reported its first decline in annual deliveries on Thursday, also weighed down by the electric pioneer’s aging product lineup.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila)