Rivian (RIVN) drastically cuts costs as push for first profit ramps up: What to expect in Q2
Rivian (RIVN) is learning from its past as it looks to turn its first profit. The cost of building its vehicles has “improved dramatically” as Rivian slashes costs on its path to profitability.
After establishing itself as a true luxury EV brand, Rivian is looking to control costs as it moves toward the next chapter.
Rivian delivered over 50,000 vehicles last year, more than doubling from 2022. The R1S was the fourth best-selling EV in the US through Q1 2024, behind only Tesla’s Model Y, Model 3, and the Ford Mustang Mach-E.
Meanwhile, Rivian delivered 13,588 vehicles in the first quarter, a slight decrease from the 13,972 handed over in Q4 2023.
Rivian expected deliveries to slall after announcing plans to shut down production at its Normal, IL plant last year. Rivians CEO and founder RJ Scaringe said during a recent fireside chat that the planned shutdown in April “introduced a dramatic cost reduction in material costs.”
Scaringe warned, “From an investor perspective, the second quarter’s going to be messy,” following a month-long shutdown.
Rivian looks past “messy” Q2 as it cuts costs
Although new supplier contracts and production upgrades will drastically lower Rivian’s bill of materials into 2025, we may not see much of the impact until Q3.
“We will deliver a very small percentage of these newer vehicles [in terms of cost] in Q2,” Scaringe explained, adding, “You won’t see a lot of those benefits until you get to Q3.”
These changes have been negotiated with suppliers over the past two years, so Rivian isn’t “hoping or wishing costs were lower.” Rivian also added hundreds of new robots, increasing the line rate by 30%.
The EV maker has eliminated 100 steps from battery making, 52 pieces of equipment from the body shop, and over 500 parts from the design of the R1T and R1S.
Scaringe told Reuters during a recent factory tour that the upgrade earlier this year resulted in a 35% cost reduction of materials for its vans. The new changes provide savings of a “similar magnitude” for its other vehicles.
Rivian’s cost of building vehicles has “improved dramatically,” Scaringe said. “The design of the parts and the design of the plant facilitate making the vehicle easier to build.”
The next chapter
Rivian’s gross vehicle margins have improved over the last year after it lost around $39,000 on each EV built in Q1 2024. That’s down from the +$67,300 loss in Q1 2023 but up slightly from the $32,594 and $30,500 losses in Q2 and Q3 2023, respectively.
| Q3 ’22 | Q4 ’22 | Q1 ’23 | Q2 ’23 | Q3 ’23 | Q4 ’23 | Q1 ’24 | |
| Rivian loss per vehicle | $139,277 | $124,162 | $67,329 | $32,594 | $30,500 | $43,372 | $38,784 |
The EV maker expects the cost savings to help it reach a positive gross margin by the end of the year. Rivian ended Q1 with just under $8 billion in cash and equivalents, which is enough to launch its smaller, more affordable R2 model.
Rivian expects R2 to greatly expand its market after the $45,000 electric SUV earned over 68,000 reservations in less than 24 hours.
The R2 will be built at its Normal plant starting in early 2026. Rivian initially planned to begin R2 production at its new GA facility, but the move helped save $2.25 billion while accelerating the launch.
Rivian’s R2 will account for 155,000 of the 215,000 future capacity at Rivian’s Normal plant. The plant’s current capacity is around 150,000 vehicles.
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The GV90 is set to raise the bar as the most luxurious Genesis SUV. If you thought the GV80 was impressive, wait until you see this larger, three-row electric flagship. After it was recently spotted in the US, we are getting our first glimpse of the ultra-luxe Genesis GV90’s interior.
First look at the Genesis GV90 interior in the US
Genesis previewed the flagship SUV at the NY Auto Show last March with the Neolun concept, which the brand refers to as its “ultra-luxe vision of luxury SUVs.”
It’s not only stunning on the outside, but the full-size SUV will introduce advanced new tech and upscale design features for “a whole new level of luxury.”
Drawing inspiration from Korean aesthetics, the interior is fit for royalty. The concept featured a “Royal Indigo” cashmere and a vintage-like “Purple Silk” leather. Genesis topped it off with dark-colored wood accents for an even more luxurious feel.
After it was spotted in public in California, it looks like the interior of the Genesis GV90 will retain some elements from the concept.
The new photos, courtesy of The Korean Car Blog, offer a sneak peek at what we can expect when it arrives in production form.
You’ll notice that the color scheme remains largely the same, with purple accents on the door trim, seats, and other interior elements.
The GV90 will serve as the luxury brand’s tech beacon, featuring Hyundai Motor’s latest technology and software. A 24″ infotainment system will sit at the center with navigation and voice command recognition.
It will also feature a 3D audio experience with tweeters, midrange speakers, woofers, and subwoofers strategically placed, creating an immersive audio experience. The iconic Crystal Sphere is not only a centerpiece, but it will also serve as a hi-fi tweeter speaker.
According to Luc Donckerwolke, Genesis’ chief creative officer, the concept is “the epitome of timeless design and sophisticated craftsmanship.” Do you agree?
With GV90 models now in public testing, Genesis appears to be on track to launch the flagship SUV in mid-2026. Earlier this month, we got a closer look at the exterior after it was caught testing at the Nürburgring with less camo.
More details, including prices and final specs, will be revealed closer to launch. However, it is expected to ride on Hyundai’s new eM platform, which will replace its current E-GMP.
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Jakub Porzycki | Nurphoto | Getty Images
The SEC has formally dropped its lawsuit against Binance and founder Changpeng Zhao, bringing an end to one of the last remaining crypto enforcement actions brought by the agency.
In a Thursday filing in the U.S. District Court for the District of Columbia, lawyers for the SEC and Binance jointly moved to dismiss the case, which was first brought in June 2023.
The original complaint accused the crypto exchange of violations including illegally serving U.S. users, inflating trading volumes, and commingling customer funds. The agency also claimed that Binance unlawfully enabled trading in crypto assets it viewed as unregistered securities, an argument that was also used against Coinbase, Kraken, and others under prior SEC leadership.
The dismissal marks a symbolic end to one of the most aggressive crypto crackdowns in U.S. history, and comes as the Trump administration makes a concerted effort to prove that it’s an ally to the industry. The Justice Department has already shut down its crypto enforcement team, and the Commodity Futures Trading Commission is now set to be led by a venture capitalist with close ties to crypto.
Binance is the largest digital assets exchange in the world by volume. It recently forged ties with World Liberty Financial, a project that aspires to be a crypto bank and funnels 75% of profits to entities linked to the Trump family. Binance is taking a $2 billion investment from the Emirati state fund MGX entirely in USD1, a stablecoin newly launched by the World Liberty team.
Binance and World Liberty are also deepening their footprint in Pakistan, where WLF co-founder Zack Witkoff, the son of U.S. Middle East envoy Steve Witkoff, recently struck a deal with the government. Around the same time, Zhao was appointed as an adviser to Pakistan’s newly formed Crypto Council, a state-backed body tasked with shaping national digital asset policy.
The SEC was the last major regulator still pursuing Binance after a $4.3 billion settlement with the U.S. government last year that saw Zhao plead guilty and step down as CEO, while avoiding jail time and retaining much of his wealth.
The agency’s motion to dismiss was granted with prejudice, meaning the SEC can’t refile the same claims.
Under the SEC’s new leadership, the agency has shifted away from enforcement and toward engagement and regulatory rollback. It’s held a series of roundtables led by Commissioner Hester Peirce and newly appointed Chair Paul Atkins.
The SEC has also begun dismantling key rules that once kept Wall Street on the sidelines. In January, it scrapped Staff Accounting Bulletin 121 — a controversial directive issued under former Chair Gary Gensler that forced banks to count crypto holdings as liabilities on their balance sheets. Peirce celebrated the reversal on X, posting, “Bye, bye SAB 121! It’s not been fun.”
In February, the agency followed up with new guidance indicating that it doesn’t view most meme coins as securities under federal law, providing a boon to the Trump family.
President Trump and several of his family members are closely tied to crypto ventures, including the $TRUMP token, which launched just before his January inauguration. The coin currently boasts a market cap of about $2.4 billion, with its website claiming that 80% of the supply is held by the Trump Organization and affiliated entities.
WATCH: President Trump holds controversial private dinner for top investors in his meme coin
After its electric vehicle sales more than doubled in the first quarter, GM claims it’s now the “#1 EV seller” in Canada. With a full lineup of 13 all-electric vehicles, GM sold more EVs than Tesla in Canada.
GM tops Tesla to become the #1 EV seller in Canada in Q1
GM’s electric vehicle sales in Canada surged by 252% in the first three months of 2025, with new Chevy and Cadillac models driving growth.
The Chevy Equinox EV led the way with 1,892 units sold, followed by the Silverado EV with 894 units. Cadillac’s new entry-level OPTIQ had a strong showing, with 615 models sold, nearly matching the 720 units sold of its first EV, the LYRIQ.
Even the GMC Hummer EV Pickup and SUV saw more demand, with sales up 232% (186) and 88% (252), respectively.
Combined, the automaker sold a total of 5,750 EVs in Q1. According to GM, this was enough to top Tesla to become “the #1 EV seller in Canada.”
GM Canada recently posted on social media, saying, “We claimed the top spot as Canada’s #1 EV seller!” The news comes as registration data show that Tesla registered just 524 vehicles in Quebec in Q1, down 87% from the same period last year.
The steep decline in sales comes after the Quebec government paused federal EV incentives from February to April 1st. Canada also paused its iZEV rebate program in January, which offered up to $5,000 on the purchase or lease of an EV. Like the US federal EV Tax credit, it was designed to be used at the point of sale to help lower prices.
GM also registered significantly fewer Equinox and Blazer EVs in Quebec during the quarter. Despite higher year-over-year (YOY) sales, GM’s electric vehicle (EV) sales were down considerably from the over 15,000 in Q4 2024.
The American automaker will continue to expand its lineup with the launch of the new Cadillac Escalade IQL, Lyriq-V, and Visiq.
By the end of the year, we also expect to get our first look at the next-gen Chevy Bolt EV with deliveries starting in 2026.
Electrek’s Take
GM is building momentum with new models rolling out, which now cover nearly every segment. In the US, GM surpassed Ford and Hyundai Motor, including Kia, to become the second-largest seller of EVs last year.
Chevy is now the fastest-growing EV brand in the US. The new electric Equinox, or “America’s most affordable 315+ miles range EV,” as GM calls it, is quickly becoming a top seller. The Blazer and Silverado EVs are also gaining traction.
Cadillac reported its best first quarter since 2008, with retail sales increasing by 21%. After delivering the first models in Q1, the entry-level OPTIQ is off to an impressive start with 1,716 units sold.
GM will top off its US electric vehicle lineup with the next-gen 2026 Chevy Bolt EV due out later this year or in early 2026.
Source: GM Authority, GM Canada
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