Financial Data and Key Metrics Changes - Consolidated revenues for Q3 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [9][10] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [9][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [11][12] Business Line Data and Key Metrics Changes - The automotive segment produced 10,720 vehicles and delivered 13,201 vehicles, generating $1.1 billion in automotive revenue, although automotive gross profit was negative $130 million due to low fixed cost absorption [10][11] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [11] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][7] - The R2 is designed to address a significant market opportunity with a lower cost and improved performance, aiming to capture a wide range of customers [4][17] - The company plans to expand its manufacturing capacity significantly, with an additional 400,000 annual units expected from a new facility in Georgia [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [9] - The CEO expressed confidence in the company's technology and product offerings, positioning Rivian as a potential market share leader in the long term [8] Other Important Information - The company is reaffirming its 2025 delivery guidance range of 41,500-43,500 units and expects a capital expenditure range of $1.8 billion-$1.9 billion for 2025 [12] - The company is also expecting to receive additional capital of up to $2.5 billion from its joint venture with Volkswagen Group [11][12] Q&A Session Summary Question: Demand environment in the U.S. post-removal of consumer tax credit - Management noted a pull forward of demand into September due to the end of the IRA program, leading to a softer demand environment in October, but remains confident in the long-term demand for R2 [15][16] Question: Expectations for regulatory credits - Management does not expect meaningful revenues from regulatory credits and has removed them from forecasts due to uncertainty in policy changes [19] Question: COGS per vehicle - COGS for Q3 was approximately $96,300 per vehicle, with expectations for improvement as R2 ramps up production [22][23] Question: Update on Volkswagen relationship - The relationship remains strong, with ongoing collaboration on multiple programs, including the development of the Volkswagen ID.1 [30][31] Question: Role in the robotaxi market - The company sees potential in the robotaxi market but is currently focused on technology development for personally owned vehicles [33][34] Question: Plans for eRev vehicles - The company is not planning to offer eRev or hybrid vehicles, focusing instead on a fully electric future [39][40] Question: Update on tariffs and battery sourcing - Recent tariff policy changes are expected to reduce tariff costs per vehicle significantly, and the R2 program will utilize a specific battery cell produced in the U.S. [46][49] Question: OpEx trajectory and R2 launch production cadence - Elevated R&D spending is expected leading up to the R2 launch, with limited volumes in the first half of 2026 and increasing production in the second half [60][63] Question: Capacity saturation and market entry - The company is optimistic about the demand for R2 and R3, with plans to enter the European market, although specific timing has not been announced [68][72][98]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [9] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [9][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [11][12] Business Line Data and Key Metrics Changes - The automotive segment produced 10,720 vehicles and delivered 13,201 vehicles in Q3, generating $1.1 billion in automotive revenue, although automotive gross profit was -$130 million due to low fixed cost absorption [10][11] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [11] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] - The company is optimistic about capturing market share with R2, which is designed to be a cost-effective option starting at $45,000, appealing to a wide range of customers [17][18] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][7] - A significant investment in Georgia is expected to create 7,500 jobs and provide billions in economic benefits, supporting the expansion of U.S. manufacturing and technology [7] - The company aims to differentiate its autonomous capabilities through an end-to-end AI-centric approach, leveraging data from its growing fleet of vehicles [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [9] - The company reaffirmed its 2025 delivery guidance range of 41,500-43,500 units and adjusted EBITDA loss guidance of $2 billion-$2.25 billion, with expectations for gross profit to be roughly break-even for the full year [12] Other Important Information - The company is not expecting meaningful revenues from the sale of regulatory credits and has removed those from its forecast due to uncertainty in policy changes [19] - The R2 program is set to launch with a 4695 cylindrical cell produced in the U.S. starting in late 2026, with ongoing partnerships to ensure favorable sourcing [49] Q&A Session Summary Question: Demand environment in the U.S. post-consumer tax credit removal - Management noted a pull forward of demand into September due to the end of the IRA program, leading to a softer demand environment in October, but remains confident in the long-term appeal of R2 [16][17] Question: Expectations for regulatory credits - Management does not expect meaningful revenues from regulatory credits and has conservatively removed them from forecasts [19] Question: COGS per vehicle - COGS per vehicle was approximately $96,300 in Q3, with expectations for improvement as R2 ramps up production [22][23] Question: Update on Mind Robotics - The company raised $110 million in seed funding for Mind Robotics, focusing on developing AI-enabled robotic solutions for manufacturing efficiency [25][42] Question: Update on Volkswagen relationship - The relationship remains strong, with ongoing collaboration on multiple programs, including the development of the Volkswagen ID.1 [30][31] Question: Tariff impacts and battery sourcing for R2 - The company expects a reduced tariff impact of a few hundred dollars per vehicle moving forward, with plans to source battery cells domestically [46][49] Question: OpEx trajectory for autonomy training - Elevated R&D spending is expected leading up to the R2 launch, with a normalization of expenses anticipated post-launch [60][61] Question: Production cadence for R2 - Limited volumes are expected in the first half of 2026, with a ramp-up in production in the second half [62] Question: Capacity saturation concerns - The company is optimistic about the demand for R2 and believes it will attract a wide range of customers, addressing a currently underserved market [69][70] Question: European market entry - The company is considering entering the European market sooner due to the removal of export tariffs, although no specific timing has been announced [97] Question: Timing between R2 and R3 launches - R3 will be produced only in the Georgia facility, with no specific timing announced for its launch [99]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [8][10] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [8][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [10][11] Business Line Data and Key Metrics Changes - In the automotive segment, the company produced 10,720 vehicles and delivered 13,201 vehicles, generating $1.1 billion in automotive revenue, although automotive gross profit was negative $130 million due to low fixed cost absorption [9][10] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [10] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] - The company is optimistic about capturing market share with R2, which is designed to be a cost-effective option in the midsize SUV segment, starting at $45,000 [17][58] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][6] - A significant investment in Georgia is expected to create 7,500 jobs and provide billions in economic benefits, supporting the expansion of U.S. manufacturing and technology [6][11] - The company aims to differentiate its autonomous capabilities through an end-to-end AI-centric approach, leveraging data from its growing fleet of vehicles [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [8] - The company reaffirmed its 2025 delivery guidance range of 41,500-43,500 units and expects to achieve positive gross profit and unit economics for R2 by the end of 2026 [11][12] Other Important Information - The company is not planning to offer an extended range electric vehicle (eRev) and remains committed to a fully electric future [35] - The relationship with Volkswagen Group remains strong, with ongoing collaboration on multiple programs [27][28] Q&A Session Summary Question: Demand environment in the U.S. post-consumer tax credit removal - Management expected a pull forward of demand into September due to the end of the IRA program, resulting in softer demand in October, but remains confident in the long-term demand for R2 [16][17] Question: COGS per vehicle and future cost expectations - COGS for Q3 was approximately $96,300 per vehicle, with expectations for improvement as R2 ramps up production and scales [21][22] Question: Update on the Volkswagen relationship - The relationship is strong, with ongoing collaboration and product development, including the Volkswagen ID.1 [27][28] Question: Tariff impacts and battery sourcing strategy for R2 - The company expects a reduced tariff impact moving forward and plans to source battery cells domestically in Arizona [42][44] Question: Free cash flow and working capital outlook - Working capital is expected to consume cash in Q4, with a normalization anticipated as production ramps up in 2026 [63][64] Question: R2 pricing strategy and market entry - The company plans to launch R2 with a well-appointed dual-motor variant, with additional trims to follow as production scales [70][71]

Rivian Automotive Conference Call Summary Company Overview - **Company**: Rivian Automotive (NasdaqGS:RIVN) - **Date**: September 10, 2025 - **Key Speaker**: RJ Scaringe, Founder and CEO Key Points R2 Vehicle Launch and Demand - Rivian has over 100,000 non-binding pre-orders for the R2 vehicle, which starts at an average selling price (ASP) of $45,000, significantly lower than the R1's ASP of around $90,000 [4][5][3] - The R2 is seen as a critical program for Rivian, expected to enable higher production volumes and positive free cash flow [4][6] - Initial excitement for the R2 has been strong, with 70,000 orders within 24 hours of its launch announcement in spring 2024 [5] Production and Manufacturing Confidence - Rivian plans to begin shipping the R2 in the first half of 2026, with a production capacity of 150,000 units per year at its Normal, Illinois facility [10][9] - The company has learned from the R1 production challenges, focusing on supplier readiness and validation to ensure a smooth ramp-up for R2 [10][8] European Market Potential - The R2 is designed for both U.S. and European markets, with potential for 0% tariffs on exports from the U.S. to Europe, making it an attractive market for Rivian [12][11] - Rivian has existing service infrastructure in Europe from its commercial van operations with Amazon, which can be scaled for R2 [15][14] Manufacturing Technology and Cost Structure - Rivian is focusing on simplifying product design to reduce costs, with the bill of materials being a significant cost driver [16][17] - The company is exploring further manufacturing innovations for future production phases, including potential changes in Georgia [17] R1 Vehicle Performance - The R1 is the best-selling premium electric SUV in the U.S., with a market share of approximately 35% in the premium SUV segment [18][19] - Rivian plans to shift some customers from R1 to R2, allowing R1 to move further upmarket and increase its ASP [23][22] Commercial Vehicle Business - Rivian's contract with Amazon for 100,000 commercial vehicles is still on track, with expectations for significant growth in deliveries by 2026 and 2027 [24][25] - The company sees potential for expanding its commercial business beyond Amazon, driven by lower total cost of ownership for electric vehicles [26] Technology and Partnerships - Rivian has a joint venture with Volkswagen Group, providing access to its electrical and electronic architecture, valued at approximately $6 billion [28][37] - The architecture supports software-defined vehicles, allowing for easier updates and new features [34][35] Autonomy and Future Expectations - Rivian plans to offer Level 3 autonomy by 2026, with expectations for significant advancements in self-driving technology by 2030 [41][45] - The company is focused on solving technical challenges before exploring partnerships in the autonomous vehicle space [48] Financial Outlook - Rivian aims to achieve adjusted EBITDA break-even by 2027, with the R2 program designed to support a healthy gross margin even without existing incentives [50][51] - The ramp-up of R2 production in 2026 is seen as crucial for reaching positive EBITDA in 2027 [52] Additional Insights - Rivian's approach to manufacturing and technology emphasizes cost reduction and efficiency, positioning the company for competitive advantage in the electric vehicle market [16][36] - The company is optimistic about the future of electric vehicles and the potential for growth in both consumer and commercial segments [25][26]