Rivian Automotive, Inc. / DE Q1 FY2025 earnings call

• Rivian delivered a second consecutive quarter of positive gross profit of $206 million, meeting the gross profit milestone with Volkswagen Group and expecting $1 billion funding at end of June.
• R1S was bestselling SUV in California over $70k and number one bestselling electric SUV in US over $50k.
• Rivian Autonomy platform: second generation platform changed perception stack and compute, R1 vehicles have 55 megapixels of cameras and over 200 tops of onboard inference, launched hands-free, eyes-on driving for highway, plan to expand to hands-free and eyes-off, and to host AI and Autonomy Day in fall.
• Progress in R2: start of validation builds, expansion of Normal, Illinois manufacturing facility, construction of 1.2 million square foot Supplier Park in Normal, plan to start construction on Georgia facility next year.
• Aidan Gomez joined Board of Directors.

In the first quarter of 2025, the Automotive segment generated $922 million in revenue. It produced 14,611 vehicles and delivered 8,640 vehicles. The Software and services segment had total revenue of $318 million. Total gross profit was $206 million, with $92 million from automotive gross profit and $114 million from software and services gross profit. Adjusted EBITDA losses were negative $329 million. As of March 31, 2025, there was $7.2 billion of cash, cash equivalents and short-term investments. Rivian expects to receive up to $3.5 billion of incremental capital from Volkswagen Group, up to $6.6 billion loan from the Department of Energy for the Georgia facility, and has access to $1.3 billion of availability under its ABL facility. Volkswagen Group is expected to invest $1 billion in Rivian common shares related to the gross profit milestone achieved in Q1.

• Revised delivery outlook to 40,000 to 46,000 vehicles.
• Maintain adjusted EBITDA outlook of negative $1.7 billion to negative $1.9 billion.
• Expect modest positive gross profit for full year 2025.
• Raise capital expenditure guidance to $1.8 billion to $1.9 billion due to tariffs.
• Plan to shut down consumer and commercial manufacturing lines in Normal plant for approximately one month in second half of 2025 to prepare for R2 launch in first half of 2026, and operate R2 on single shift in 2026.

• External factors like changes to government policies and regulations, macroeconomic impact on consumer behavior and supply chain impacts from trade and tariff policies could impact 2025 expectations.
• Monitoring potential impacts on production due to export restrictions on rare earth materials from China.

Q: Dan Levy asked about batteries, tariffs, and R2 cost considerations.

A: RJ Scaringe and Claire McDonough responded on battery sourcing, tariff impacts on R2, and cost considerations for R2.

Q: Adam Jonas asked about autonomy and rare earths.

A: RJ Scaringe responded on autonomy platform and rare earths efforts.

Q: Shreyas Patil asked about tariff impact per vehicle and material cost opportunities.

A: Claire McDonough and RJ Scaringe responded.

Q: Joseph Spak asked about depreciation in COGS and inventory.

A: Claire McDonough and RJ Scaringe responded.

Q: Mark Delaney asked about delivery guidance and regulatory credits.

A: RJ Scaringe and Claire McDonough responded.

Q: Philippe Houchois asked about inventory and Autonomy platform sharing.

A: Claire McDonough and Javier Varela and RJ Scaringe responded.

Q: Edison Yu asked about tariffs and Autonomy economics.

A: RJ Scaringe responded.

Q: George Gianarikas asked about EV adoption technologies and Volkswagen JV.

A: RJ Scaringe responded.

Q: Ben Kallo asked about demand from Tesla and slate auto.

A: RJ Scaringe responded.

Q: Ronald Jewsikow asked about delivery guidance and R2 retooling.

A: RJ Scaringe and Javier Varela responded.

Q: Itay Michaeli asked about Autonomy platform launch and R2 autonomy hardware.

A: RJ Scaringe responded.