Rivian Automotive (NASDAQ: RIVN) reported Q1 results slightly ahead of expectations, but remains unprofitable and is not expected to reach breakeven until 2026. Management revised down 2025 delivery expectations to 40,000-46,000 units, citing tariff pressures and demand challenges. The company also continues to invest heavily in its R2 production facilities, which are on track to begin deliveries in the first half of 2026.
There were some encouraging signals. Software and Services revenue reached $316 million, with gross margins climbing to 36%—a bright spot amid the broader financial struggles. Q1 also marked the second consecutive quarter of gross profit, triggering a $1 billion investment from joint venture partner Volkswagen, to be provided through share purchases. Rivian also appears to have mitigated some tariff risks, confirming it has sufficient battery inventory to cover production through the end of 2025.
Management also noted that it expects only around $300 million in regulatory credit sales for FY25, despite selling $157 million in Q1 alone. It remains unclear why Rivian is not leaning more heavily into this revenue stream to improve its financial position.
For more details, key highlights, and commentary, check out the high-level earnings summary.
