Rivian Automotive Inc Q2 2025 Earnings Call Summary

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

Question: Dan Levy - Barclays Services Corp - Analyst : I want to start with the question I think that's probably on everyone's mind, which is just bridging from R1 to R2. And I think the obvious key here is the cost reduction and you're saying you can cut the cost by more than half. But maybe you can just remind us again about -- what are the things in R1 that won't recur? And on the flip side, you're talking about things like sourcing and contracts that can help on R2. What is the conviction that you can get the required cost reduction from these items to get appropriate economics on R2?

Question: Dan Levy - Barclays Services Corp - Analyst : Okay. Great. As a follow-up, I think related. A year ago at your Investor Day, you outlined a path to EBITDA breakeven in 2027. We've obviously seen a number of changes since done with lower regulatory credit environment as you're talking about tariffs, the loss of the EV tax credit. So question is, what are the areas in which you need to pivot the business now to still see that path to eventually reaching EBITDA positive? And how much more does this make licensing deals or other partnerships with automakers on the tech side more of a necessity to ultimately get to where you need to be on the EBITDA margin side?

Question: Adam Jonas - Morgan Stanley - Analyst : My first question is on the $6.6 billion loan with the Department of Energy that's associated with the build-out of Georgia. Can you confirm, has any of that loan been drawn? And is there a scenario where you would decide not to draw on that loan? Because from the readings of the shareholder letter, I don't see much of an update on CapEx going into that -- into the build-out at this point. But just maybe kind of where are we on that? What's your thinking on that loan? And then I have a follow-up.

Question: Adam Jonas - Morgan Stanley - Analyst : Okay. Thanks, Claire. Just as a follow-up, you spun off also in in March of this year, your micro mobility unit. You seem to have attracted some pretty serious talent to that unit as well. And I think there's probably more announcements to come there, I would assume. Aside from the minority stake held by Rivian, and maybe you can confirm how big that is, is there any other relationship between Rivian and also Inc -- And how much time, RJ, are you spending on this entity with your current role as Chairman? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 9:00PM, RIVN.OQ - Q2 2025 Rivian Automotive Inc Earnings Call

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Thank you very much for taking the questions. I think Rivian's COGS per vehicle went up about $22,000 sequentially. Can you elaborate more on what drove that and to what extent these are temporal relative to sustained costs. And then you spoke about taking costs down by more than 50% with R2 compared to the R1. So I'm hoping to better understand if there are some sustained higher cost levels you're seeing with the R1. Does that change the absolute cost that you expect R2 to come in at?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Very helpful. My other question was around ASPs. I'm hoping to better understand how Rivian is expecting ASPs per vehicle to trend. You launched the quad motor talked about the positive pricing benefits of that product line, but with the IRA credits to go away in the fourth quarter, I'm wondering if you think Rivian is going to need to adjust its pricing strategy and perhaps it may be a headwind. So any more color around how to think about pricing and puts and takes.

Question: Joseph Spak - UBS AG - Analyst : Maybe just two quick clarifications and then a bigger picture question. You previously on these earnings calls have said you were baking in several hundred million dollars in policy impacts, which I know it was vague, but I think it was interpreted and suggested as tariffs and some regulatory credit. So I know you just lowered regulatory credit basically assuming then in the back half. That seems like it's maybe half the EBITDA reduction. But what exactly got worse on tariffs and now you see it a couple of thousand dollars per vehicle higher. And then just the other clarification on the '27 EBITDA target, which I know came up a couple of times since I guess the regular or credit, so the one thing you're willing to concede has changed. Like how much was actually baked into '27 for that number?

Question: Joseph Spak - UBS AG - Analyst : The second question, I want to touch back on something Adam brought up earlier, which is the second plant. So you're taking three weeks downtime here in September to get normal capacity to 215,000. You're currently producing a I don't know, probably like below 20% of that utilization right now. So I realize like it's not fair because you have much higher volume bumps for the R2. But I guess like at what level of utilization do we need to see it normal before you really start thinking about commission in Georgia.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : You sort of alluded to this in the previous answer, but I'm curious with the impressive specs of the R2 and the compelling price. You are admittedly launching it into a challenging market for EVs. Can you just sort of illuminate us as to maybe broad marketing strategies, or anything you plan to do to boost the market appeal of the product. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 9:00PM, RIVN.OQ - Q2 2025 Rivian Automotive Inc Earnings Call

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And maybe as a brief follow-up. Any news to share on commercial vehicle momentum. Any additional wins or traction there?