Rivian Automotive Inc Q1 2025 Earnings Presentation Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Dan Levy - Barclays Capital Inc. - Analyst : I wanted to first start with a question on batteries and the tariff impacts. I appreciate the disclosure that you have enough cells to get you through into early 2026. But perhaps you can give us a sense thereafter what your strategy is, especially around LFP. I appreciate that you do have the cells for R2 eventually going to be from the US. But what's your strategy around LFP. Maybe you could just confirm, are the LFP sales tariffed as an automotive product at 47.5% or as a nonautomotive product that's 145%.

Question: Dan Levy - Barclays Capital Inc. - Analyst : Okay. Thank you. Second question is also on the theme of tariffs. And A, the $3,000, I think that's out there, what period is that for what vehicles? And then, B, if you could just talk to broadly how you see the COGS of R2 being impacted? So I appreciate the battery commentary. But what other cost considerations are there R2? How dramatically does this change the cost structure for R2?

Question: Dan Levy - Barclays Capital Inc. - Analyst : Great. Thank you.

Question: Adam Jonas - Morgan Stanley & Co. LLC - Analyst : So first, RJ, I want to ask you about autonomy. The pressure to compete with Tesla just gets more and more intense as FSD makes further progress. How are you going to catch them and match them technologically with such a small fleet and less computing resources and having a later start on moving to end-to-end? And can you -- how confident are you can develop this in-house? Or do you need an external partner to help speed things up?

Question: Adam Jonas - Morgan Stanley & Co. LLC - Analyst : Thanks, RJ. And just a follow-up for Claire. You called out rare earth supply specifically and said that you will explore strategic sourcing to mitigate. For rare earth, which was so critical for the powertrain specifically, what exactly are you doing, can you do in the event that China were to make sourcing of such materials or the processing upstream, less available? I just want to know exactly what those efforts could be.

Question: Adam Jonas - Morgan Stanley & Co. LLC - Analyst : Thanks RJ.

Question: Shreyas Patil - Wolf Research Securities - Analyst : Just to clarify, I think, Claire, you mentioned $2,000 per vehicle of tariff cost. I just want to make sure I heard that right. And then is -- does that incorporate the latest US manufacturing reimbursement program that the administration announced last week? And if so, is the primary exposure as it relates to tariffs, is that primarily on batteries?

Question: Shreyas Patil - Wolf Research Securities - Analyst : Okay. Great. And then I was wondering if you could maybe just help us think through some of the remaining material cost opportunities that you see with R1 and then as we kind of transition R2. I know, obviously, last quarter, you had the launch of the refreshed R1. It REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:00PM, RIVN.OQ - Q1 2025 Rivian Automotive Inc Earnings Presentation looked like COGS per unit further improved into Q1 versus Q4. So I'm just wondering how much of that was material related and where you see additional opportunities, both for this program and then additionally for R2?

Question: Shreyas Patil - Wolf Research Securities - Analyst : Okay. Great. Thanks.

Question: Joseph Spak - UBS Securities LLC - Analyst : Claire, you mentioned auto gross profit ex credits and depreciation was positive, and that's obviously a pretty good proxy for cash gross profit. So that's encouraging. It did look though, like the depreciation and amortization in COGS line was down quite meaningfully quarter-over-quarter, and it's really actually trended down for a while. So I guess I just want to understand what's driving that and how we should think about depreciation going forward because you guys are still investing. So I would have kind of expected it to move the other way.

Question: Joseph Spak - UBS Securities LLC - Analyst : Okay. And then maybe a good segue to the second question, which is you talked about the over production. You're mentioning this couple thousand per vehicle tariff headwind. I mean it seems like that overproduction probably helps you minimize the impact for the year, right, since there was probably a more minimal tariff impact in the quarter. So I mean, rough math, it seems like it should probably be under $100 million total impact for the year. Is that ballpark correct? And I guess I just want to understand if that's changed versus the I think you mentioned last quarter a couple of hundred million impact undisclosed from what, but related to policy.

Question: Joseph Spak - UBS Securities LLC - Analyst : Thank you.

Question: Mark Delaney - Goldman Sachs & Co. LLC - Analyst : With respect to reducing the full year outlook for deliveries, can you help us better understand is that based on weaker incoming orders, Rivian has already been seen? Or purely an expectation that the market is going to deteriorate going forward as you think about tariff costs and the effects on pricing as well as the broader economy?

Question: Mark Delaney - Goldman Sachs & Co. LLC - Analyst : That's helpful. And hopefully, the new advertising campaign also is a step forward. I did like the limited advertising campaign that you guys just launched. My other question was on regulatory credits. It came in very strong in the first quarter. I wanted to better understand if the company still expects about $300 million of regulatory credit revenue for 2025? Or does the strength that you saw in the first quarter imply some upside to the outlook there?

Question: Philippe Houchois - Jefferies - Analyst : It's Philippe Houchois, Jefferies. Second follow-up on the question from Joe on inventory. I'm surprised the inventory didn't go up more than the $250 million considering the overproduction what Claire you just said about shifting some of the depreciation into inventory and also the fact you hold more batteries. Did you do any action to actually free up some capital from that inventory?

Question: Philippe Houchois - Jefferies - Analyst : Right. That's good to hear. Thank you. And then maybe a follow-up on your Autonomy platform. Is that part of the technology you would potentially share with Volkswagen and particularly on using the Volkswagen volume market share to acquire more data in the sensors? Or is that separate?

Question: Philippe Houchois - Jefferies - Analyst : Okay. Thank you very much.

Question: Xin Yu - Deutsche Bank. Securities Inc. - Analyst : Wanted just to confirm one thing on the comments about tariffs as it relates to R2. Is the current thinking that if the existing regime tariff regime stays that we would not be impacted in the timing of the -- of SOP and also the starting price that we're aiming for?

Question: Xin Yu - Deutsche Bank. Securities Inc. - Analyst : Understood. And then a follow-up on autonomy. Wondering if you could share your latest thoughts on the economics of that. And it could -- I guess there's two elements. There is the cost of getting there, and there's the sort of monetization? And if there's any kind of more updated numbers you could share perhaps on the pricing, this could ultimately be? Would it be similar to FSD? Would there be a subscription offering to along those lines?

Question: Xin Yu - Deutsche Bank. Securities Inc. - Analyst : Thank you.

Question: George Gianarikas - Canaccord Genuity LLC - Analyst : There's a debate around how to increase EV adoption. Obviously, you're bringing R2 and R3 to market to help lower price points to that end. And some companies in China are introducing faster charging batteries with likely faster battery degradation as well. We obviously need more charging network density. Can you sort of talk to us about any technologies you're trying to bring to market to make that happen? Maybe your own batteries to improve EV penetration in the US and the West?

Question: George Gianarikas - Canaccord Genuity LLC - Analyst : Thanks. And maybe as a follow-up on the Volkswagen JV, can you tell us if any other OEMs have possibly approached you to collaborate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 9:00PM, RIVN.OQ - Q1 2025 Rivian Automotive Inc Earnings Presentation

Question: George Gianarikas - Canaccord Genuity LLC - Analyst : Thanks.

Question: Ben Kallo - Robert W. Baird & Co. Incorporated - Analyst : Have you seen an uptick just in demand from everything going on with Tesla? And my second question is about slate auto and what that means to you guys?

Question: Ronald Jewsikow - Guggenheim Securities, LLC - Analyst : Maybe starting on the delivery guidance changes. Any detail or high-level commentary on if the reduction is primarily from vans or consumer vehicles? And is there some supply risk baked into the reduction? I know you talked about railroad restrictions, Claire? Or is this solely what you're seeing in kind of the current demand backdrop?

Question: Ronald Jewsikow - Guggenheim Securities, LLC - Analyst : Yes. I appreciate the color there. And then -- it's exciting to see some of R2 content start to trickle out on social media. It seems like we're getting to the point where you're doing pilot production and it's starting to feel a bit more real. I guess maybe is there an update on retooling and production downtime? And just for clarification, have you sourced the capital equipment you need for the R2 already? Or is that what some of the capital equipment inflation is for this year, just as we think about risk for the R2 launch?

Question: Ronald Jewsikow - Guggenheim Securities, LLC - Analyst : Yeah. We're excited for it as well. I appreciate all the color. Thanks.

Question: Itay Michaeli - TD Cowen - Analyst : Just had two clarifications back to the Autonomy platform. First, are you still on track to launch eyes off in controlled conditions next year? Maybe talk about kind of what you need to see to do that? And secondly, with R2, should we think about that as having a standard autonomy hardware system or could we see potentially different iterations on that platform depending on the trend level?

Question: Itay Michaeli - TD Cowen - Analyst : That's all helpful. Thank you.