Rivian Automotive (NASDAQ:RIVN) reported Q4 results that beat expectations on both the top and bottom lines. Revenue reached $1.29 billion while the adjusted EPS loss of $0.54 was narrower than the $0.67 consensus. A key driver was revenue from the software and services segment, which jumped 109% year-over-year. Management highlighted the expanding Volkswagen joint venture as a critical high-margin revenue source that provides a floor for the business.
The upcoming R2 launch remains the primary focal point. However, management noted that the R2 will not be gross margin positive at the start of production. Additionally, analysts expressed concern regarding the timing of the R2 release. Since the next generation autonomy platform will not be integrated until late 2026, there are questions about whether initial R2 models will see softer demand from tech-focused buyers who may choose to wait for the updated suite.
For more details, key highlights, and commentary, check out the high-level earnings summary.
