Rivian Automotive Inc Q3 2025 Earnings Call Transcript

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

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Meaningfully, I think it came down to about $96,000 per vehicle, even with the downtime the company take to get the normal site ready for R2. I think, Claire, you mentioned material cost is one of the key drivers of that. But I was hoping you could speak a bit more on what you're seeing in terms of cost per vehicle. I guess, ultimately, any change in where you think costs can get to, especially as you look out to R2?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : My other question was on mine and robotics. You mentioned doing work with (inaudible) antibiotics, but also bringing in external financing. So maybe just talk a bit more about what mine robotics does and what kind of opportunity you see for the entity going forward.

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : Maybe you could just update us a little bit on the Volkswagen relationship just because there are lots of headlines as to what's going on there internally. Any update there would be very much appreciated. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2025 / 10:00PM, RIVN.OQ - Q3 2025 Rivian Automotive Inc Earnings Call

Question: George Gianarikas - Canaccord Genuity Corp - Analyst : And maybe as a follow-up. I don't mean to front run the Autonomy Day in December, but what role do you see Rivian playing in the robotaxi market? There are some of your peers also developing electric vehicles that have teamed up with some of the rideshare companies. Any sort of anything you could share on that front?

Question: Joseph Spak - UBS AG - Analyst : The CEO of Scout Motors was recently reportedly said that 80% of their preorders are for their ERA variant. And you have BYD has both a BEV portfolio and (inaudible) portfolio. And even if you look at China overall, in recent years, ERA has been growing arguably faster. So there's clearly demand for that type of product. And I think there's probably some benefits to that type of powertrain for the vehicles you want to sell, meaning trucks. So maybe you disagree, I'd be curious to hear that. But I know you talked about this all-electric future you envisioned. But the question is, would you actually consider offering an ERV for the US market or globally? And if so, how easy is it to adjust the platform?

Question: Joseph Spak - UBS AG - Analyst : Okay. And as a second question, I know you spoke briefly on mind. I guess I just want to -- one, there's no spend or has there been spend already going on for that to -- how should we think about that spend going forward? Or is it all ring-fenced in the sort of external company of which you're just an owner. Maybe just if you could clarify that for us, that would be helpful.

Question: Dan Levy - Barclays Services Corp - Analyst : I would like to ask if you could possibly give us the latest update on tariffs within the results? I know you had stockpiled batteries. So I don't know if there's any impact there, but we have seen some changes in tariff policy. And then maybe just broadly on tariffs, given IRA is no longer really a consideration, how does that change the battery sourcing strategy for R2? Can you rely perhaps on some of the cheaper LFP batteries from overseas?

Question: Dan Levy - Barclays Services Corp - Analyst : Okay. Great. Second question is somewhat related. And I know that the regulatory picture still has to sort of emerge a bit more. But it is a bit more clear now. And so, can you tell us to what extent now that you have maybe a better sense on tariffs, you have a better sense on red credits. Those have moved against maybe some of the initial assumptions you had when you were planning the R2 BOM and knowing that, that BOM is sticky, what mitigants do you have to ensure that you're going to get the appropriate unit economics? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2025 / 10:00PM, RIVN.OQ - Q3 2025 Rivian Automotive Inc Earnings Call I know you've talked about plans to get the BOM cut in half versus R1 and exiting '26 with a positive gross margin. But how do you mitigate against some of these given the BOM is sticky?

Question: Federico Merendi - BofA Securities - Analyst : I wanted to touch upon the capacity that you're building up. Normal facility, you're going to have 215,000 units of production available in Georgia from what I understand, $400,000 additional. But given what you -- what Emmanuel said about the underlying demand and that you're not going to integrate your production with hybrid vehicles or rented vehicles. How should we think about the separation of those two plans that you are building up?

Question: Federico Merendi - BofA Securities - Analyst : And I would assume that to basically ramp all the volume you will export vehicles to other regions or countries. When should we assume that you will enter into other markets?

Question: James Picariello - Exane Bnp Paribas - Analyst : So just on free cash flow, how are you thinking about working capital in the fourth quarter relative to the strong source of cash contributions in the second and third quarters. And I know it was previously indicated that we should expect CapEx to run higher next year. Is there any dimensioning you can share in that increase. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2025 / 10:00PM, RIVN.OQ - Q3 2025 Rivian Automotive Inc Earnings Call

Question: James Picariello - Exane Bnp Paribas - Analyst : Understood. That makes sense. So my follow-up, with respect to the mix tranche of BW investment, the $1 billion in equity, this is tied to two scopes of successful winter testing, I believe. Do you expect the testing to take place this winter or late next year? Just curious on the time there.

Question: Ben Kallo - Robert W. Baird & Co Inc - Analyst : So maybe two parts with R2 coming. I know, RJ, you've talked about $45,000. Can you just talk about your philosophy around pricing (inaudible) and other Tesla models, they would release the highest trim if we want to call it that, first and then kind of scale down from there as the market expands. But can you think about -- can you talk to us about pricing and how you set that versus cutting it in the future, considering the -- for now, at least at normal, it seems like supply could be limited? And then how that ties into the Georgia plant and R2 because it seems like you have a lot going on in bed pricing kind of differentiating the R2 in a short amount of time.

Question: Ben Kallo - Robert W. Baird & Co Inc - Analyst : And my follow-up is along the same lines. Just in terms of marketing versus advertising, versus cutting price to figure out the market size. How do you guys think about where advertising fits in? Because a lot of the questions are focused about on other OEMs retrenching not going down the path of EVs or doing hybrid electric. And so is there something that you guys can do through advertising or marketing to distinguish that not all EVs are built alike?

Question: Philippe Houchois - Jefferies LLC - Analyst : Yes. My question was on -- so it's clear on tariff and thanks for the clarification that it's a negative still, but lesser negative than you would have been six months ago. What has become a net positive, though, compared to the past of $50 is weaker and import duties into Europe are going to go from 10 to 0, and I'm just wondering to what extent it has kind of shifted your thinking on Europe. I know you talked about Europe and R2, R3 are well suited for the market, I would agree. And does it make sense to think about a faster rollout into Europe and potentially also a bigger scale? And if you think about the potential of the market, is it still appropriate to try to do a direct selling from the US exports? Or does it make sense to try to use local distribution and dealers in Europe as a separate business model? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2025 / 10:00PM, RIVN.OQ - Q3 2025 Rivian Automotive Inc Earnings Call

Question: Philippe Houchois - Jefferies LLC - Analyst : Right. And if I can do a follow-up. I think you've been quite efficient in delivering the R2 development on time, and that congratulations for that. Can you remind us what kind of time lag we might expect between R2 hitting the road and then R3? Is it 12, 18 months, 24 months? What's the time frame there?

Question: Colin Langan - Wells Fargo - Analyst : If I look at the midpoint of guidance, it implies adjusted EBITDA is actually improving into Q4. But the midpoint on delivery guidance will be down. So what would drive better Q4 EBITDA and lower volumes?

Question: Colin Langan - Wells Fargo - Analyst : Got it. you talked about regulatory credits, you don't expect any for the rest of the year. Are there any -- as we think about '26, is there any coming in sometimes the contracts or multiyear? Or should we kind of assume things is also doesn't have (inaudible)?