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American EV automaker Rivian has shared its full financial report and shareholder letter for Q1 2025. The quarterly update details continued gross profits and a growing interest in the company’s two flagship BEVs. Rivian is also making headway in developing its second model, R2.

Rivian ($RIVN) continues to roll along as a prominent shaker in the American EV space, especially as legacy competitors scramble to adapt to the ever-evolving threat to their assembly lines due to proposed tariffs and an ongoing trade war with other global superpowers like China.

Ahead of today’s full Q1 2025 report, Rivian has shared its delivery numbers for the first three months of the year, shipping out 8,640 R1S and R1T models to customers. This was to be expected, as Rivian CFO Claire McDonough said during the Q4 earnings call that the automaker anticipated the dip in deliveries, citing a “supply shortage of a component in our Enduro motor system” that began in Q3 2024.

Despite the notable drop in EV deliveries compared to previous quarters, Rivian relayed that it remained on track to deliver between 46,000 and 51,000 EVs in 2025. This afternoon, Rivian adjusted that target alongside financial updates pertaining to Q1 2025.

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Rivian Q1 2025
Source: Rivian

Rivian’s Q1 2025 report by the numbers

The main headline of Rivian’s Q1 2025 was its gross profit of $206 million. That marks the American automaker’s second consecutive quarter of reporting gross profit as well as its highest to date. Rivian shared that of that $206 million mark, $92 million came from the automotive segment and $114 million came from its software and services segment.

Rivian also achieved an 85% increase in cash flow from operating activities in Q1 2025 compared to a year prior. As we spoke about earlier this week with a teaser image of Rivian’s new Maximus drive unit posted by CEO RJ Scaringe, reducing the cost-per-unit of its BEV components while increasing production efficiency – a key goal of the company at the moment.

According to the automaker, it has achieved a $22,600 reduction in automotive cost of goods sold per vehicle delivered in Q1 2025 compared to Q1 2024.

Rivian also looks to bolster its balance sheet very soon, thanks to a previously announced joint venture with Volkswagen Group worthy of an investment of up to $5.8 billion. According to Rivian’s Q1 2025 report, its gross profit milestone has unlocked $1 billion from VW Group through said joint venture and is expected to be finalized by June 30, 2025.

While Rivian said its delivery targets were on track a month ago, the American automaker has since revised its annual numbers, citing the current economic trade environment around the world:

While Rivian has 100% US vehicle manufacturing and a majority of its bill of materials (excluding cells) coming from the U.S. or USMCA-qualified, Rivian is not immune to the impacts of the global trade and economic environment. The company’s guidance represents management’s current view on evolving trade regulation, policies, tariffs and the overall impact these items may have on consumer sentiment and demand. As a result of these impacts, Rivian has revised its delivery outlook to 40,000 to 46,000 vehicles.

That’s not a huge slide, and if Rivian hits the top end of that target, it would still equal the lower end of its previous goal for 2025. Looking ahead, Rivian said it is maintaining its outlook range for adjusted EBITDA of a $1.7 billion loss to a $1.9 billion loss. Rivian also relayed an expectation to achieve “modest positive gross profit for the full 2025 fiscal year. Lastly, Rivian is raising its capital expenditure guidance to between $1.8 billion and $1.9 billion, citing an expected impact from tariffs.

Other Rivian updates

Aside from the numbers, Rivian’s Q1 2025 shareholder letter included several progress updates, particularly regarding its highly anticipated R2 EVs. According to the company, it has commenced design validation builds on its R2 prototype line using production tooling.

The new 1.1 million-square-foot manufacturing expansion at Rivian’s Normal, Illinois, production facility, where the general assembly line for the R2 will be, is progressing on schedule and will “allow for additional manufacturing efficiency gains.” That new building will also house a new body shop.

This week, we learned that the new expansion will also be joined by a supplier park supported by a $16 million incentive package from Illinois.

Following today’s Q1 2025 report, Rivian will host an audio webcast to discuss the details above at 2:00 pm PT / 5:00 pm ET today. Tuesday, May 6, 2025.

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U.S. crude oil rises about 4% after OPEC+ increases output at steady rate

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U.S. crude oil rises about 4% after OPEC+ increases output at steady rate

Oil prices eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.

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U.S. crude oil futures rose about 4% on Monday after OPEC+ increased production at a steady rate, easing investor fears that the group might boost output even faster.

West Texas Intermediate futures rose $2.53, or 4.16%, to $63.32 per barrel. Global benchmark Brent was up $2.34, or 3.73%, at $65.12 per barrel.

The eight producers in OPEC+, led by Saudi Arabia, agreed to increase production by 411,000 barrels per day in July, the third consecutive month the group has boosted output at that rate.

“There were market concerns of a faster unwind process,” said Giovanni Staunovo, commodity analyst at UBS, told clients in a note Saturday. “For now, the oil market remains tight, indicating it can absorb additional barrels,” Staunovo said.

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No, Honda didn’t just launch its first electric motorcycle (and you can’t buy it)

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No, Honda didn't just launch its first electric motorcycle (and you can't buy it)

The electric motorcycle market is a small and highly interconnected one, with a limited amount of suppliers and an even smaller number of actual honest-to-goodness motorcycle manufacturers. While Covid-era progress led to a series of highly-funded rapid advancements and flashy announcements, the last few years have been hard on the industry as funding and excitement have both dwindled, resulting in a smaller number of big releases. So it makes sense that people would jump at news that Honda is now producing its first electric motorcycle and that you can already buy it. The only problem is that none of that is true – finally some real fake news.

In the last few days, a number of news outlets ran with a story claiming Honda was now producing and selling its first ever electric motorcycle, a bike known as the E-VO. While some articles presented a fairly grounded and accurate analysis of the situation, others jumped on the more clickbaity bandwagon.

Like many rumors, the story does have some truth to it. There is an interesting-looking cafe racer-styled E-VO bike that was just announced, and its logo does partially include a red Honda badge, but that’s where things start to go awry as some articles played a bit fast and loose with the facts.

The main issues with the story heard ’round the internet are that 1) Honda has already produced multiple electric motorcycles, 2) the E-VO isn’t really a Honda, and 3) you can’t actually buy the bike, at least not the way many headlines would have you believe.

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The Chinese launch of the Honda-Wuyang E-VO

To be fair, even Electrek wasn’t spared, with its own story repeating several dubious claims seen elsewhere around the internet, among other smaller mistakes such as a strange swipe at LiveWire for not producing DC fast-charging electric motorcycles, which it famously does.

But let’s break down each of the errors or flashy clickbait headlines that duped many journalists and electric motorcycle fans alike.

The first major issue is that the premise is wrong. Honda has built multiple electric motorcycles in the past, though generally smaller designs with step-through frames. The E-VO would be a new design direction, taking on an eye-catching cafe racer design, but let’s not forget that models like the all-electric Honda PCX Electric were launched back in 2018. In fact, Visordown strangely mislabeled a photo of a PCX Electric, referring to it as an E-VO in its own article a few days ago. (And to be fair, not everyone whiffed on this one, with outlets like RideApart and CycleWorld giving even-handed and accurate coverage to Honda’s e-moto efforts).

Second, this motorcycle isn’t even a Honda. If you look closer at the badging, you’ll see it’s labeled as “Wuyang Honda” with the first word obviously printed much smaller in the logo to obscure it in favor of Honda’s much stronger brand reputation. To put it simply, the E-VO is produced by the Chinese company Wuyang, in which Honda invested in as part of a joint venture. Wuyang-Honda is a Chinese company owned by the major Chinese automaker GAC. It does produce some Honda-developed motorcycles for the Chinese market (like the CB series, CBR, etc.), but it also produces its own domestic market-only models. The latter is what the E-VO is. It’s not a Honda and it’s not produced by Honda. It’s produced by Wuyang-Honda, which is a Chinese company partially funded by the Japanese company Honda to make money from the Chinese market. It’s similar to how Ducati doesn’t really make those Ducati electric bicycles, but rather engages in a licensing agreement that lets another company produce them and print a famous name on the side.

And that brings us to the third major issue glossed over in the E-VO launch – that you can’t really buy it. Well, some people can, but not you. At least, not unless you happen to be Chinese or living in China. As mentioned above, this isn’t a Honda motorcycle that you can buy at a Honda dealer. It’s a Wuyang motorcycle that was recently launched in China and only sold in China. It wasn’t designed for export and doesn’t meet any other international regulations or safety standards because it wasn’t designed for any other markets outside of China.

Electrek’s Take

I’ve been a fan of electric motorcycles for a long time, riding and covering them with excitement as I’ve watched the industry progress. I talk the talk and I walk the walk. I don’t even own a car, as my family gets around entirely on electric motorcycles, e-scooters, and e-bikes. I don’t intend to unfairly call out other news outlets or even my own colleagues, but I do think that accuracy in reporting on such a nascent industry is important.

Accuracy in reporting isn’t just about keeping the industry well-informed but also ensuring realistic expectations among the public. Just like all of those stories popping up a few years ago to the effect of “GM is producing a $14,000 electric pickup truck” turned out to be clickbait (they were electric mini-trucks produced in China, for the Chinese market, by Chinese companies in which GM invested), the E-VO has also turned into something of a white whale. For years, riders have begged major manufacturers like Honda to get on board with electric motorcycles. And so when there’s even an inkling of progress on that front, the story can get ahead of itself.

That isn’t to say that Honda won’t ever produce a full-sized e-moto or street bike. Perhaps the E-VO will sell well in China and Honda will look favorably upon Wuyang’s work there. But the moment when an honest-to-goodness Honda electric motorcycle lands is still years away, and no amount of wishful thinking or creative writing is going to change that.

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Tesla (TSLA) sales crash in France even with new Model Y

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Tesla (TSLA) sales crash in France even with new Model Y

The French are saying “non, merci” to Tesla, as sales crashed to just 700 units in May – a level not seen in more than three years.

The Model Y changeover was clearly not the problem.

Last week, Tesla CEO Elon Musk claimed that the company has “no demand problem” and that even though Europe is its weakest market, “everyone is struggling in Europe, there’s no exception.”

We have already produced a report to demonstrate that this is not true, but we are now receiving more data from May, which highlights Tesla’s growing problems in Europe.

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France has just released its car registration data for May, confirming that the auto market is down 12%. However, Tesla’s sales were down even more than the rest of the market.

Tesla delivered only 721 vehicles in France in May – down 67% compared to the same period last year.

In Q1, Tesla blamed its poor performance on the lack of Model Y availability due to the design changeover, but it doesn’t have this excuse in Q2, which is now tracking below Q1 in Europe.

May was Tesla’s worst month of deliveries it has had in the last three years. It’s also even worse than any month of deliveries in the first quarter, despite the new Model Y now being in full production in Gigafactory Berlin and available in France.

Electrek’s Take

I’ll write a more comprehensive post about Tesla’s sales in Europe once we have data from more countries in May, but it’s not looking good.

Tesla blamed its terrible performance in Q1 on the Model Y changeover, but we are past that in Q2. Yet, April was worse than January, and now, it looks like May is going to be below February in the whole of Europe.

The only positive market so far is Norway, and that’s probably due to some of its large existing base of owners in the country updating to the new Model Y, but it will be interesting to see if it’s sustainable through out the rest of the year. I doubt it. Tesla benefited from the Model Y changeover, but I expect the brand damage will also be felt in the popular EV market.

This result in France in May is particularly interesting because it is even worse than April. I literally have to go back to Q2 2022 to find a quarter when Tesla had a worse second month of a quarter in France.

It is starting to look like demand collapse.

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