Rivian Q2 2025 Highlights: Quad Launch, R2 Factory Expansion, and AI Push

Rivian’s Q2 2025 shareholder letter paints a picture of a company leaning hard into the future. Despite a dip in production, Rivian hit its second consecutive quarter of gross profit, continued building momentum behind its upcoming R2 platform, and saw early excitement around the new Quad-Motor R1 launch.

Let’s break it down.

R2 is Getting Real

R2 development is moving fast. Rivian is already building design validation vehicles using production tooling, and construction of the new 1.1 million square-foot R2 general assembly building in Normal, Illinois is nearly complete. Equipment installation is underway, and commissioning of the production line is expected in Q3.

R2 remains on track to start deliveries in the first half of 2026. Importantly, Rivian says R2 will cost less than half as much to build per unit as R1, which could be a huge lever for long-term profitability.

Quad-Motor R1 Launch is a Statement

July marked the launch of the new second-gen Quad-Motor R1T and R1S. These vehicles are equipped with four in-house designed motors and new software features like RAD Tuner and kick turn. EPA range is up to 374 miles, or 400 in Conserve mode, and for the first time, Rivian has included a native NACS port.

Deliveries Up, Production Down

Rivian delivered 10,661 vehicles in Q2, up from 8,640 in Q1. But production fell to 5,979 units, impacted by supply chain snags and trade policy changes. Rivian also took a planned one-week plant downtime to prepare for the R2 paint shop upgrade. That said, Q3 is expected to be the biggest delivery quarter of the year.

Autonomy and AI Progress

Rivian’s in-house autonomy stack continues to improve with better 360º object detection, enhanced highway assist, and updates to the onboard perception model. These updates fuel their Rivian Large Driving Model, a foundation AI model being trained on massive volumes of real-world data.

They’re also opening an AI-focused office in London to tap into the UK’s growing AI talent pool.

Software Keeps Getting Smarter

The latest OTA brought a smoother low-speed ride, a revamped charging interface, and a new Google Maps integration optimized for Rivian. Charging speeds on Gen 2 large pack models have improved by up to 15%, and real-time trip planning is now even better thanks to the Google partnership.

Financial Picture

Here’s the state of the books:

Revenue: $1.3 billion in Q2, up from $1.2 billion last year
Software and Services Revenue: $376 million (up from $84 million YoY)
Gross Profit: Still negative at -$206 million, but a big improvement over -$451 million last year
Cash on hand: $7.5 billion
Net loss: $(1.12) billion, improved from $(1.46) billion last year
Adjusted EBITDA: $(667) million

The Volkswagen JV is already helping, with $1 billion in cash received in Q2 and another $1.5 billion expected in 2026 if milestones are met. Rivian also refinanced $1.25 billion in debt with new green bonds maturing in 2031.

Charging and Retail Growth

123 RAN sites with over 780 chargers now online
Over 65% of the network now supports all EVs
New off-peak pricing is rolling out at many locations
112 service/retail locations open now, with plans to hit 135 by year-end
The Volkswagen JV is already helping, with $1 billion in cash received in Q2 and another $1.5 billion expected in 2026 if milestones are met. Rivian also refinanced $1.25 billion in debt with new green bonds maturing in 2031.

Outlook for 2025

Rivian reaffirmed its full-year delivery guidance of 40,000 to 46,000 vehicles. Capital expenditures are still expected to land between $1.8 and $1.9 billion. However, due to regulatory credit changes and Q2 performance, Rivian raised its projected adjusted EBITDA loss range to ($2.0) to ($2.25) billion.