Rivian Automotive Q1 Earnings Call Highlights

Key Points

• R2 production has started in Normal with employee deliveries underway; the model is engineered for steep cost cuts (bill of materials roughly half of R1 and non‑BOM COGS down >50%), and Rivian is targeting a two‑shift ramp to about 4,000 vehicles/week by end‑2026 with a back‑half weighted R2 delivery ramp.
• Rivian raised first‑phase Georgia capacity to 300,000 units and expects up to $4.5 billion of DOE financing for that phase (≈$4B principal + $500M capitalized interest) with draws anticipated by early 2027, while keeping additional greenfield space for future expansion.
• Q1 revenue climbed ~11% to ~$1.4 billion but adjusted EBITDA loss widened to $472 million; the company finished the quarter with ~$4.8 billion in cash, expects ~$2.55 billion of partner capital in 2026 (notably Volkswagen and Uber), and reiterated 2026 guidance of 62,000–67,000 vehicles with an adjusted EBITDA loss outlook of $1.8–2.1 billion and CapEx of $1.95–2.05 billion.

Rivian Automotive NASDAQ: RIVN executives used the company’s first-quarter 2026 earnings call to highlight the start of “saleable” R2 production in Normal, Illinois, outline changes to the Georgia manufacturing plan, and provide updates on partnerships tied to autonomy development and funding.

R2 production begins; cost reductions emphasized

CEO and Founder R.J. Scaringe said Rivian recently marked “the start of saleable R2 production” at its Normal plant and has begun delivering R2 vehicles to employees. Scaringe described R2 as a key step toward expanding Rivian’s addressable market, calling it “an attractively priced option” aimed at the five-passenger SUV and crossover segment.

Scaringe said Rivian designed R2 with significant cost reductions versus its R1 platform. He said the R2 bill of materials is expected to be “approximately half” of R1 and that non-BOM cost of goods sold is expected to fall by “more than 50%,” citing design-for-manufacturing changes and fixed-cost leverage at higher volumes.

Among the changes he listed were “large die castings,” a “structural battery pack,” a “new highly efficient drive unit,” and an evolution of Rivian’s electrical architecture that “removes miles of copper wire.” He also cited consolidation of high-voltage electronics into a single enclosure and “significant sourcing leverage relative to R1.”

CFO Claire McDonough said R2 production in Normal is starting on a single shift, with an expected move to two shifts by the end of 2026 as Rivian targets “profitably delivering 4,000 vehicles per week in Normal.” She added that a strong R2 exit rate for 2026 is a central focus because it “will directly translate into positive automotive gross profit for the business.”

Georgia plant plan updated; DOE loan reduced to $4.5B capacity

Scaringe said Rivian made a “strategic decision” to increase first-phase annual production capacity at its planned Georgia plant by 50% to 300,000 units for its midsize platform. He said the change is expected to improve cost efficiency while leaving room for future expansion and reiterated Rivian remains on track to begin midsize platform production in Georgia in late 2028.

McDonough said the company updated its Department of Energy loan plan and now expects “up to $4.5 billion” in DOE financing tied to the first phase of the Georgia expansion. She described the loan as consisting of “approximately $4 billion of principal and approximately $500 million of capitalized interest,” and said Rivian expects to draw on it by early 2027, subject to conditions.

In Q&A, McDonough said the first-phase capacity will be built on the “upper pad” at the Georgia site and that a “lower pad” remains “entirely untouched greenfield for future expansion.” She also told analysts the DOE loan is “for the initial phase” and that Rivian increased the associated loan size as it increased production volume.

McDonough also connected long-term cash generation to scale, saying the combined installed capacity from Illinois and Georgia—“515,000 total units of capacity”—would provide “a path to free cash flow positive once fully ramped.”

Q1 financial results: revenue up; adjusted EBITDA loss widens

McDonough reported consolidated first-quarter revenue of approximately $1.4 billion, up 11% year over year. Consolidated gross profit was $119 million and gross margin was 9%. She said gross profit included $122 million of depreciation and $27 million of stock-based compensation.

Adjusted EBITDA loss for the quarter was $472 million, which she said was driven by the quarter’s gross profit and increased adjusted operating expenses as Rivian prepares to scale R2 and invest in its autonomy roadmap.

Operationally, Rivian produced 10,236 vehicles and delivered 10,365 vehicles, which McDonough said was the primary driver of $908 million in automotive revenue. Automotive gross profit was a loss of $62 million, compared to $92 million of automotive gross profit in the same quarter last year. She attributed the year-over-year change primarily to a $100 million decrease in automotive regulatory credit sales and lower production volumes, which increased combined depreciation and stock-based compensation expense by $45 million.

Rivian’s software and services segment posted $473 million in revenue, a 49% year-over-year increase, and $181 million in gross profit. McDonough said $282 million, or about 60% of segment revenue, was attributable to Rivian’s joint venture with Volkswagen Group, and she also noted growth from remarketing and parts and service.

The company also recorded a $506 million gain in other income tied to a Series A capital raise and the deconsolidation of Mind Robotics from Rivian’s financial statements. McDonough said Rivian currently owns about 38% of Mind Robotics on a shares-outstanding basis.

Liquidity, partner capital, and revised funding roadmap

McDonough said Rivian ended the quarter with approximately $4.8 billion in cash, cash equivalents, and short-term investments. She said in 2026 Rivian expects to receive $2.55 billion of capital from strategic partners:

• Volkswagen Group: McDonough said Rivian received $1 billion “today” in exchange for equity following completion of a winter testing milestone by RV Tech, and expects an additional $1 billion in non-recourse debt later in 2026.
• Uber: Rivian expects $300 million later in the quarter in exchange for equity tied to signing its partnership agreement, subject to conditions, and another $250 million later in 2026 tied to robotaxi development milestones and conditions.

McDonough said this brings “total available liquidity and expected capital in 2026 of nearly $8 billion.” She also referenced a broader “$13.6 billion of total liquidity and expected capital,” including cash on hand, availability under its ABL facility, and expected partner capital over coming years.

Rivian also discussed near-term operational disruption: McDonough said the Normal factory sustained tornado damage two weeks prior to the call, but that production has resumed while repairs continue. She said 2026 guidance remains unchanged despite the weather impact.

Guidance maintained; R2 ramp expected to pressure near-term auto gross profit

McDonough reiterated full-year 2026 delivery guidance of 62,000 to 67,000 vehicles across R1, R2, and commercial vans, and maintained an expectation for Q2 deliveries of about 9,000 to 11,000 vehicles. She said the R2 delivery ramp is expected to be “back half weighted.”

While Rivian expects gross profit to increase year over year, McDonough said the complexity of a new vehicle launch is expected to negatively impact automotive gross profit in the second and third quarters before becoming a benefit in the fourth quarter as production and deliveries ramp. She said the company still anticipates exiting 2026 on a trajectory of positive automotive gross profit, including positive R2 and total automotive gross profit, as it heads into 2027.

For 2026, Rivian maintained its adjusted EBITDA loss outlook of $2.1 billion to $1.8 billion and capital expenditure guidance of $1.95 billion to $2.05 billion. McDonough said CapEx is primarily tied to finishing construction and tooling for R2 in Normal, expanding sales, service and charging infrastructure, and beginning construction of the Georgia site.

On the supply chain, Scaringe said Rivian is spending significant time managing variability in raw materials and metal costs, including aluminum, and is working proactively with suppliers while securing alternative sources for key commodities.

On tariffs, McDonough said Rivian did not book anything in the quarter related to IEPA tariffs, but believes recovery may be possible in the future, which she characterized as “tens of millions of dollars” in potential benefits and “considered within” current outlook.

Rivian also used the call to provide additional detail on autonomy. Scaringe said development of the company’s Gen 3 autonomy hardware—including its in-house Rivian Autonomy Processor (RAP1)—is on track, and reiterated expectations to roll out point-to-point driving capabilities by the end of the year. He also said Rivian plans to launch the Rivian Assistant, an AI-powered voice assistant, on R1 and R2 “in the coming weeks.”

Scaringe described autonomy monetization as “exceeding our own models,” citing a higher-than-expected take rate for paid Autonomy+. He added Rivian does not plan to break out autonomy revenue separately within software and services.

Regarding robotaxis, McDonough and Scaringe said early milestones tied to Uber funding include operating Rivian vehicles with safety drivers in San Francisco and Miami later this year. McDonough said the longer-term plan includes “full deployment” in a couple of cities in 2028 and “25 cities by 2031” tied to unlocking remaining Uber capital.

About Rivian Automotive NASDAQ: RIVN

Rivian Automotive, Inc is an American automotive technology company specializing in the design, development and manufacture of electric vehicles. The company is best known for its all-electric R1 platform, which underpins the R1T pickup truck and R1S sport utility vehicle. In addition to consumer products, Rivian has secured a significant commercial contract to produce electric delivery vans for a leading e-commerce provider, underscoring its capability to serve both retail and fleet customers.

Founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, Rivian has grown from a research-focused startup into a publicly traded corporation.

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