Rivian Narrows Q1 Loss, Starts R2 Production as Shares Fall

Rivian Automotive Inc. reported improved first-quarter results on Thursday while announcing the start of production for its mass-market R2 electric SUV at its Normal, Illinois, plant, but shares fell in after-hours trading amid limited details on demand for the closely watched model.

The company posted a net loss of $416 million, or 33 cents per share, narrower than the $541 million, or 48 cents per share, from a year earlier. Revenue rose 11 percent to $1.38 billion, driven by $908 million in automotive sales from 10,365 deliveries and $473 million from software and services, which grew 49 percent year over year. Automotive gross profit swung to a $62 million loss from a $92 million profit, mainly due to a $100 million drop in regulatory credit sales and lower volumes. Adjusted earnings before interest, taxes, depreciation and amortization showed a $472 million loss.

Chief Executive Officer R.J. Scaringe said production of saleable R2 vehicles has begun, with initial deliveries to employees underway and customer deliveries expected later this spring. He highlighted cost reductions, noting the R2's bill of materials is about half that of the R1 platform through innovations like...