Rivian Q2 revenue rises 27% as R2 SUV launch boosts outlook

Rivian Automotive reported improved second-quarter financial results and raised its full-year outlook, driven by the launch of its more affordable R2 SUV and growth in its software business, even as the company continues to navigate significant losses and a challenging electric vehicle market.

The company announced on Thursday, July 30, that its revenue for the quarter rose 27% year-over-year to $1.66 billion, exceeding analyst expectations. It posted a consolidated gross profit of $179 million, a record for the company and a substantial improvement from a year ago. Despite this progress, Rivian reported a net loss of $837 million, though this was narrower than the loss from the same period last year.

A key driver of the quarter was the start of customer deliveries for the R2 SUV, which began on June 9. Company executives said initial demand and conversion rates for the vehicle are exceeding internal expectations. Rivian hosted a record 57,000 demo drives during the quarter. The R2 represents Rivian's strategic push into the mass market, with a starting price below $50,000.

However, the ramp-up of R2 production incurred approximately $100 million in incremental costs during the...