Rivian shares fell 6.5% post-earnings, with investor disappointment centered on margin compression and a significant swing to an automotive gross profit loss despite higher revenues, as margin headwinds outweighed the excitement around R2 production ramp.

• Automotive gross profit swung to a loss of $62 million, compared to $92 million gross profit in the prior-year first quarter, largely due to a $100 million decline in automotive regulatory credit sales.
• Consolidated gross margin fell to 9%, with gross profit at $119 million; adjusted EBITDA loss was $472 million, reflecting increased operating costs tied to R2 scaling and autonomy investment.
• Q1 consolidated revenue increased 11% year-over-year to $1.4 billion, as Rivian produced 10,236 vehicles and delivered 10,365 vehicles.
• R2 production has started, with initial deliveries to employees and a plan to ramp up to two shifts by year-end, targeting 4,000 vehicles per week at full scale.
• While management emphasized structural cost reductions for R2 and long-term positive automotive gross profit, near-term execution risks and compressed margins prompted investor concern.