Financial Data and Key Metrics Changes - In Q2, the company produced 5,979 vehicles and delivered 10,661 vehicles, generating $927 million in automotive revenue [14] - Consolidated revenue for the quarter was $1.3 billion, with gross profit losses of $206 million, including $185 million in depreciation and $37 million in stock-based compensation [16] - Adjusted EBITDA losses for the quarter were $667 million, with an increase in overall operating expenses compared to Q1 due to ongoing investments in key technologies and sales infrastructure [16][18] Business Line Data and Key Metrics Changes - Automotive gross profit losses were $335 million, negatively impacted by lower production volumes and approximately $137 million of fixed costs included in cost of revenues [15] - The Software and Services segment reported $376 million in revenue and $129 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [15] Market Data and Key Metrics Changes - The company expects total regulatory credit sales for 2025 to be approximately $160 million, down from a prior outlook of $300 million due to changes in regulatory credit programs [18] - Increased tariffs are expected to have a net impact of a couple thousand dollars per unit for the remainder of 2025 [18] Company Strategy and Development Direction - The company is focused on developing world-class technology and efficiently scaling manufacturing capacity in the U.S. in light of evolving policy changes [7] - R2 is a core focus, with the company aiming to deliver millions of vehicles per year, supported by a new 1.1 million square foot facility in Houma, Illinois [9][10] - The company is also investing heavily in its autonomy platform, believing that advanced levels of autonomy will be essential for future vehicle success [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complex and rapidly evolving policy environment affecting the business, including changes to EV tax credits and tariffs [7] - Despite recent headwinds, management remains confident in achieving positive EBITDA by 2027, driven by R2 production and strong software and services performance [28][66] Other Important Information - The company received a $1 billion equity investment from Volkswagen Group at a 33% premium to the trading day volume weighted average stock price [16] - The company plans to shut down its normal facility for approximately three weeks starting in September to prepare for the planned launch of R2 in 2026 [17] Q&A Session Summary Question: Transition from R1 to R2 and cost reduction - Management confirmed that the bill of material cost for R2 is about half that of R1, supported by negotiated contracts with suppliers [24][27] Question: Path to EBITDA breakeven in 2027 - Management is working on cost efficiency initiatives and believes that R2's cost structure will support achieving positive EBITDA by 2027 despite recent headwinds [28][66] Question: Impact of Department of Energy loan - The company intends to draw on the $6.6 billion loan from the Department of Energy for the Georgia facility once construction begins [39] Question: COGS per vehicle increase - The increase in COGS per vehicle was primarily due to lower production volume and higher warranty costs, with expectations for improved cost structure with R2 [48][50] Question: ASP trends and pricing strategy - Management believes that R2 will maintain a healthy positive gross margin and is closely monitoring market conditions to adjust pricing strategies as needed [67]

Financial Data and Key Metrics Changes - In Q2 2025, the company produced 5,979 vehicles and delivered 10,661 vehicles, generating $927 million in automotive revenue [14] - Consolidated revenue for the quarter was $1.3 billion, with gross profit losses of $206 million, impacted by $185 million in depreciation and $37 million in stock-based compensation [16] - Adjusted EBITDA losses for the quarter were $667 million, with an increase in operating expenses due to ongoing investments in technology and sales infrastructure [16][19] Business Line Data and Key Metrics Changes - The Automotive segment faced a significant decrease in production volume compared to Q1, leading to automotive gross profit losses of $335 million due to fixed costs [15] - The Software and Services segment reported $376 million in revenue and $129 million in gross profit, with half of the revenue coming from a joint venture with Volkswagen Group [15] Market Data and Key Metrics Changes - The company anticipates total regulatory credit sales for 2025 to be approximately $160 million, down from a prior outlook of $300 million due to changes in regulatory credit programs [19] - The company expects the third quarter to be the peak delivery quarter of the year across both consumer and commercial vehicles [18] Company Strategy and Development Direction - The company is focused on developing the R2 vehicle and its autonomy platform, aiming to scale production and establish market leadership [5][6] - The company plans to shut down its normal facility for approximately three weeks in September to prepare for the R2 launch in 2026 [17] - The company is actively studying tariff mitigation strategies and believes that R2 and technology development will be transformative for growth and profitability [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged changes in the external operating environment, including complex policy changes affecting EV tax credits and tariffs, which are expected to impact results and cash flow [6][19] - Despite headwinds, management remains confident in achieving positive EBITDA by 2027, driven by R2 production and strong software and services performance [30][64] Other Important Information - The company received a $1 billion equity investment from Volkswagen Group at a 33% premium to the trading price [16] - The company refinanced its senior secured notes by issuing $1.25 billion of green secured notes at a 10% rate maturing in January 2031 [17] Q&A Session Summary Question: Transitioning from R1 to R2 and cost reduction - Management confirmed that the bill of material cost for R2 is about half that of R1, supported by negotiated contracts with suppliers [24][28] Question: Path to EBITDA breakeven in 2027 - Management emphasized that the R2 cost structure is designed to achieve positive gross margins, despite recent headwinds [66] Question: Impact of the Department of Energy loan - Management confirmed that the loan has not yet been drawn as construction has not started, but they intend to utilize it for expanding manufacturing in Georgia [39] Question: COGS per vehicle increase - The increase in COGS per vehicle was primarily due to lower production volumes and fixed cost absorption issues [48] Question: ASP trends and pricing strategy - Management indicated that Rivian remains a market share leader in its segments and expects strong ASPs despite potential headwinds from the loss of IRA credits [54][56]