Rivian is set to report its second-quarter earnings on August 6, following a period of increased sales, cost-cutting measures, and a substantial $5 billion investment from Volkswagen as part of a joint venture between the automakers.
In the second quarter, Rivian’s sales rose by 9% to 13,790 vehicles, despite an April factory shutdown to reduce production costs and refresh the R1T pickup and R1S crossover for the 2025 model year. However, data from Motor Intelligence indicates that the company faced pressure on vehicle margins due to increased sales incentives during this period. Incentives for the R1T rose to $4,415 from $255 a year earlier, and for the R1S increased to $2,830 from $271.
CEO RJ Scaringe noted that the second-quarter production costs would reflect a mix of mostly 2024 model-year vehicles, with some freshened 2025 models benefiting from a lower cost structure. The majority of cost savings, however, are expected to be realized in the third quarter.
Despite its efforts, Rivian has been burning through cash since it began vehicle production in late 2021. The company, which also produces delivery vans for Amazon, reported a net loss of $1.4 billion in the first quarter of this year and a net loss of $5.4 billion for the 2023 calendar year. At the end of the first quarter, Rivian had $7.9 billion in cash and equivalents.
Executives remain optimistic about Rivian’s path to profitability, bolstered by Volkswagen’s significant investment. This investment will partially fund a joint venture to integrate Rivian’s electrical architecture into future Volkswagen Group vehicles. Starting in 2026, Rivian will also use this new architecture, initially developed for the refreshed R1 models, in its own lower-cost vehicles.
Currently, Rivian’s R1 vehicles start at over $70,000 with shipping. The company is preparing its Normal, Illinois factory for the launch of a smaller crossover, the R2, which will start at around $45,000. An even lower-cost R3 model is planned, though its timeline and pricing details are not yet available.
