Rivian earnings, Waymo partners with Toyota, Ford bets on V2H for Fathom, and more

So Rivian... is ramping up the R2.

It's trying to achieve positive gross margin, trying to...

I mean, it's not quite there to be profitable.

Profit gross margin is the first step that they're trying to achieve here.

They never really got to it cleanly, I should say, for the R1s.

R2 is supposed to be the thing that gets them there through economy of scale.

But there's a lot of things happening here.

In terms of the expectations, they basically were right on expectation, a little bit over it when it comes to revenue.

They were expecting about revenue of $2 billion.

They went $2.15.

The beat was mostly regarding the software and service.

Most of that is coming to their joint venture with Volkswagen.

They achieved a gross profit on their operation, but that is... almost entirely due to the service and software aspect.

They were a little bit short on the positive gross margin on the actual vehicles.

Not by that much though, like $100 million on 200 billion of sales.

Well, 1.5 really for the automotive

division.

So they ended up losing from operation $435 million and free cash flow was down $1.1 billion, but that's including CapEx.

They ended the quarter with $5.5 billion, which should last them a few years.

And they have a credit facility available to them.

Plus, they also have not guaranteed, but as close to guaranteed from Uber, another $250 million from Uber, another $300 million from Volkswagen.

So looking at them, it looks like they can keep going that way for another two years, maybe three years if they're lucky.

But obviously, that's not the goal.

The goal is that R2 gets in there.

So when it comes to R2, they confirmed that it's now the best-selling vehicle, outpacing the R1S, which was previously the best-selling vehicle.