Rivian Automotive(US:RIVN)2025-11-04 23:02Financial 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]