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’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.