Revenues Soar: R2 Nears Launch and New AI Company Emerges
Rivian’s latest shareholder letter reveals strong financial outcomes for Q3 2025, highlighting a promising future for the electric vehicle manufacturer. The company is gearing up to launch its much-anticipated R2 model, alongside significant advancements in its business strategy.
Financial Highlights from Q3 2025
Rivian reported impressive results, delivering a total of 13,201 electric vehicles during the third quarter. This marked an increase from previous quarters:
- Q1 2025: 8,640 vehicles
- Q2 2025: 10,661 vehicles
- Q3 2025: 13,201 vehicles
Production figures also saw an upswing, with 10,270 vehicles built at Rivian’s Normal, Illinois facility. This growth aligns with the company’s belief that Q3 would be its peak quarter of the year.
Revenue Breakdown
Rivian’s consolidated revenue for Q3 totaled $1.56 billion, an increase of 78% year-over-year. Key revenue sources included:
- $1.14 billion from automotive sales (+47% YoY)
- $416 million from software and services (+324% YoY)
Gross profits indicated varied performance. The overall gross profit rose to $24 million. However, automotive gross profit remained negative at $(130) million, offset by a positive $154 million from software and services.
R2 Launch Timeline and Innovations
The R2 model is a cornerstone of Rivian’s strategy. The company completed construction of a 1.1 million square-foot body shop in Normal, bolstering its capabilities for production. Validation builds for the R2 are currently undergoing rigorous testing, with manufacturing expected to commence by the end of 2025, and initial customer deliveries scheduled for the first half of 2026.
Expansion of Business Ventures
In a notable move, Rivian announced the establishment of a new e-bike brand named ALSO. Additionally, the company introduced a new AI venture called Mind Robotics. This initiative, recently established with $110 million in external seed capital, aims to advance industrial AI and leverage Rivian’s operational data.
RJ Scaringe, Rivian’s CEO, emphasized the company’s vision for an electric, autonomous, and software-defined automotive landscape. He believes that Rivian’s innovations, including the R2, will cater to diverse customer needs while establishing a robust presence in both U.S. and European markets.
Future Outlook
Rivian expects to deliver between 41,500 and 43,500 vehicles in 2025, with projected adjusted EBITDA ranging from $(2,000) million to $(2,250) million. Capital expenditures are estimated to be between $1,800 million and $1,900 million.
Further details on Rivian’s plans for autonomy and AI will be shared during the scheduled Autonomy and AI Day on December 11, 2025. For ongoing updates, Rivian will conduct a live webcast at 5 PM ET today.
