Rivian Automotive (RIVN), a California-based electric vehicle startup, reported positive gross profit for the second consecutive quarter in Q1 2025. As a result, the company is set to receive an additional $1 billion in funding from a partnership with Volkswagen (VWAGY), which has already invested $1 billion through a convertible note and plans to invest a total of $5.8 billion by 2027.
The EV market in the U.S. is showing signs of cooling, with only 16% of Americans likely to buy an EV as their next car, the lowest since 2019. Despite these challenges, Rivian aims to deliver between 40,000-46,000 vehicles in 2025, down from 51,579 last year. The introduction of the R2 model at a lower price point is seen as a potential key growth driver, alongside a significant expansion of production facilities.
As of March 2025, Rivian reported $7.2 billion in cash reserves and expects further funding through its joint venture with Volkswagen and loans for its Georgia facility. Analysts have projected a year-over-year improvement in losses for 2025 and 2026, suggesting that Rivian is better positioned for long-term growth despite current market pressures.
