Rivian Automotive, Inc. Q2 FY2025 earnings call

• R2 Progress: Made progress in R2 design validation builds on pilot line, new 1.1 million sq ft building in Normal, IL for R2 assembly; confident in R2's product-market fit. - Autonomy Platform: Focus on AI and autonomy, launched enhanced highway assist, planning autonomy and AI day in December. - R1 Quad-Motor: Launched with positive feedback, elevates R1 platform. - Financials: Strengthened balance sheet with $1B equity investment from VW and refinanced notes; saw increase in operating expenses due to R2 development and sales/service infrastructure growth.

In the second quarter, the automotive segment produced 5,979 vehicles and delivered 10,661, contributing $927 million in revenue. Automotive gross profit loss was $335 million. The software and services segment had $376 million in revenue, with about half from the joint venture with Volkswagen Group, and $129 million in gross profit. Consolidated revenue was $1.3 billion, gross profit losses were $206 million, and adjusted EBITDA losses were $667 million.

• Maintained delivery guidance of 40,000 to 46,000 vehicles and CapEx guidance of $1.8 billion to $1.9 billion. - Third quarter expected to be peak delivery quarter. - Lowered regulatory credit outlook: Expect total 2025 regulatory credit sales to be ~$160M vs prior $300M, leading to adjusted EBITDA loss guidance of $2B to $2.25B for 2025. - Tariffs: Couple thousand dollars per unit net impact for remainder of 2025.

• Policy environment complexity: Changes in EV tax credits, tariffs, trade regulations affecting results and cash flow. - Supply chain challenges: Impacted production volumes in Q2. - Regulatory credit program changes: Loss of revenue from regulatory credits for remainder of 2025.

Q: Bridging from R1 to R2, cost reduction.

A: BOM cost on R2 about half of R1, contractually negotiated with suppliers, focus on ease of assembly Q: $6.6B DOE loan.

A: Not drawn yet, but intend to draw as construction starts in Georgia Q: Micromobility unit.

A: Rivian is major shareholder, focused on electrifying world beyond cars Q: COGS per vehicle increase.

A: Driven by lower production volume, fixed cost absorption, LCNRV, warranty costs Q: EBITDA breakeven 2027.

A: R2 cost structure, joint sourcing, software services growth support path to EBITDA positive Q: Autonomy sensor set.

A: AI-centric approach with sensor fusion, confident in early sensor fusion approach