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]

Rivian Automotive (RIVN) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Derek Mulvey - VP - FinanceRobert Scaringe - Founder, CEO & Chairman of the BoardClaire McDonough - CFOJavier Varela - Chief Operations OfficerAdam Jonas - Head of Global Auto & Shared Mobility ResearchShreyas Patil - Vice President - Equity ResearchJoseph Spak - Managing DirectorPhilippe Houchois - Managing DirectorRonald Jewsikow - Director Conference Call Participants Dan Levy - Senior Equity Research AnalystMark ...

Rivian Automotive (RIVN) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Welcome to today's Q1 earnings result hosted by Rivian. At this time, all participants are in a listen only mode. After the speakers' presentation, we will conduct a question and answer session. I'll now turn the call over to Derek Mulvey, Vice President, Finance. Speaker1 Good afternoon, and thank you for joining us for Rivian's first quarter twenty twenty five earnings call. Today, I am joined by RJ Skarinj, our CEO and Found ...

Rivian Automotive (RIVN) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Derek Mulvey - VP - FinanceRobert Scaringe - Founder, CEO & Chairman of the BoardClaire McDonough - CFOJavier Varela - Chief Operations OfficerAdam Jonas - Head of Global Auto & Shared Mobility ResearchShreyas Patil - Vice President - Equity ResearchJoseph Spak - Managing DirectorPhilippe Houchois - Managing DirectorRonald Jewsikow - Director Conference Call Participants Dan Levy - Senior Equity Research AnalystMark ...