Rivian's Q2 2025 report reveals: Insufficient R1 production fails to disrupt delivery schedules, with R2 model continuing on its targeted timeline.
Rivian, the electric vehicle (EV) manufacturer, is set to host an audio webcast this afternoon at 2:00 PM PT/5:00 PM ET to discuss its Q2 2025 results and provide a business update.
During the second quarter, Rivian delivered 10,661 vehicles, a significant increase from the 5,979 vehicles delivered in Q1 2025. The company's delivery guidance for 2025 remains at 40,000 - 46,000 vehicles.
Rivian has also made strides in expanding its production capacity. The company has completed construction of a 1.1 million square foot plant expansion in Normal, IL for R2 production. This expansion is expected to increase the annual production capacity to about 215,000 units per year, with around 155,000 of those units being R2 SUVs annually as the company adds a third shift.
The R2 production is expected to start in the first half of 2026, with the production line commissioning and equipment validation occurring in Q3 2025. To facilitate R2 production, Rivian plans a three-week factory pause in September 2025 for the expansion and tooling installation.
However, despite increasing revenue in Q2 2025, gross profit remained flat due to rising costs. As a result, Rivian has increased its adjusted EBITDA loss guidance for 2025 to between -$2.0 billion and -$2.25 billion.
Rivian is continuing to focus on the development and launch of its upcoming R2 model, which is expected to launch at an advantaged cost structure as compared to R1. The company is confident that R2 will have a quick path to positive gross profit.
In other news, Rivian has announced a new UK office and a new East Coast headquarters outside of Atlanta. The company also received a $1 billion equity investment from Volkswagen Group as part of a larger $5.8 billion joint venture agreement.
Rivian started selling its second-generation Quad Motor R1 models in Q2 2025. The link to the webcast and shareholder letter is available on the company's website.
For more details, here's a summary of the key metrics:
| Metric | Detail | |-----------------------------|------------------------------------------------| | Annual production capacity | ~215,000 EVs post-expansion | | R2 annual production target | ~155,000 vehicles | | R2 production start | First half of 2026 (line commissioning in Q3 2025) | | Expected gross profit H2 2025 | Flat to negative; increased EBITDA loss guidance (-$2.0B to -$2.25B) |
This reflects Rivian’s current status of expanding capacity and investing heavily ahead of R2 production, with profitability still challenged in 2025 due to external factors and ramp-up costs.
[1] https://investor.rivian.com/news-releases/news-release-details/rivian-reports-second-quarter-2025-financial-results-and [2] https://www.autonews.com/automakers/rivian-plans-third-shift-electric-truck-factory-illinois [3] https://www.cnbc.com/2023/05/11/rivian-to-add-third-shift-at-illinois-factory-to-boost-production.html [4] https://www.reuters.com/business/autos-transportation/rivian-to-add-third-shift-at-illinois-factory-to-boost-production-2023-05-11/ [5] https://www.motortrend.com/news/rivian-normal-illinois-factory-expansion-r2-production/
- Rivian's Q2 2025 results demonstrate an improvement in vehicle delivery, with 10,661 vehicles delivered, up from 5,979 in Q1 2025.
- In a strategic move to increase production capacity, Rivian has completed the construction of a 1.1 million square foot plant expansion in Normal, IL for R2 production, aiming to produce about 215,000 units per year, with 155,000 being R2 SUVs annually.
- As part of its commitment to the automotive industry and technology, Rivian has received a $1 billion equity investment from the Volkswagen Group, which is the first step of a larger $5.8 billion joint venture agreement.
- The company's focus on green energy and electric vehicles (EVs) continues, with the launch of its second-generation Quad Motor R1 models in Q2 2025. Despite a flat gross profit in Q2, Rivian remains optimistic about the R2 model's potential for profitability.
