From Nasdaq: 2025-06-18 10:40:00

Rivian Automotive, Inc. reported a gross profit of $206 million in Q1 2025, marking its highest gross margin to date. The company aims to achieve profitability with the upcoming launch of R2 in H1 2026. Rivian expects a positive gross profit for 2025 and anticipates reduced fixed costs per unit with higher production volumes. Rivian also formed a joint venture with Volkswagen Group, expecting $1 billion in funding by June.

Tesla posted a gross profit of $3.15 billion in Q1 2025, down from $3.7 billion in the year-ago quarter. Lucid incurred a gross loss of $228.5 million but showed improved gross margin. Rivian, on the other hand, reported a record gross profit, outperforming the Zacks Automotive-Domestic industry YTD. Rivian’s price/sales ratio indicates undervaluation.

Zacks Investment Research revised Rivian’s EPS estimates for 2025 and 2026, with a positive outlook. Rivian appears undervalued based on its forward sales multiple compared to the industry average. The company is positioned for growth, with the upcoming launch of R2 expected to drive profitability and reduce fixed costs per unit.



Read more at Nasdaq: Will Higher Production Volumes of R2 Boost Rivian’s Gross Profit?