Rivian Automotive Inc.: Musings into RIVN 2Q EPS

Research evidence excerpt

Rivian Automotive Inc.: Musings into RIVN 2Q EPS

Barclays | Rivian Automotive Inc.

• 2Q delivery beat: RIVN 2Q deliveries of 12.2k units beat consensus of 10.6k and guidance for

9-11k. We suspect upside was primarily driven by EDV volumes, continuing the strength from

1Q. We estimate ~800 R2 deliveries during the quarter; in early-June RIVN noted that

"hundreds" of RIVN staff had taken deliveries before public deliveries started on June 9th

• Funding: In 2Q RIVN received a $1bn equity investment from VW for the successful

completion of two winter testing milestones and a $300mn equity investment from Uber

related to their AV partnership announced in 1Q.

Last week RIVN raised ~$1.3bn in an equity raise, selling 86.25mn shares at $15.50/share,

which will be reflected in the financials in 3Q. Through the rest of '26, RIVN expects to

receive $1bn of debt from VW in 4Q and $250mn of equity from Uber in 4Q. We believe

funding appears fine for now, though note that RIVN will eventually need to pursue additional

funding given higher capex requirements (~$5bn buildout of Georgia factory) and higher opex

spending (accelerated robotaxi/AV spending) ahead

• Lumpy quarter for Vehicle COGS: While COGS/vehicle has been a closely monitored metric

for RIVN, we expect 2Q COGS to be skewed by the introduction of R2. We expect COGS/vehicle

of $104k, up ~$10k q/q, with overall cost dragged by the launch of R2. Recall, following R2

SOP, RIVN must start to depreciate the fixed costs from R2's factory expansion/equipment,

and given limited incremental R2 volume in 2Q, overall fixed cost absorption will be weaker

despite the q/q production increase (+23%). Lower EDV mix will also be a q/q cost headwind,

as EDVs have much lower COGS than R1. We see ASPs of $86k, up ~$4k q/q, largely on higher