Rivian Automotive Inc - Ordinary Shares - Class A

R2 milestone + major cost/scale plan (good/surprising) - Rivian started saleable R2 production in Normal, Illinois and began employee deliveries; management says early excitement from journalists/customers is “overwhelmingly positive.” - R2 is targeted as a “game changer” mass-market vehicle for the 5-passenger SUV/crossover segment with a more accessible price point. - Cost-down thesis: R2 bill of materials expected ~half of R1; for non-BOM COGS, expect >50% reduction via design-for-manufacturing + fixed-cost absorption at higher volumes. - Key engineering changes include part eliminations, large die castings, structural battery pack, new efficient drive unit, and architecture changes reducing copper wiring + consolidating high-voltage electronics.

Normal ramp + Georgia expansion timeline and capacity increase (opportunity/forecast) - Normal ramp: R2 production starts at single shift, targeting 2 shifts by end of 2026, ramping toward a “North Star” of profitably delivering 4,000 vehicles/week in Normal. - Georgia plant: Rivian will partner with the U.S. DOE and has increased the first-phase capacity from 200,000 to 300,000 units/year (strategy attributed to confidence in R2 and scaling needs). - Start of Georgia midsized platform production: still expected late 2028; management emphasizes Georgia later phases remain flexible (lower pad untouched for future expansion).

Q1 2026 financial snapshot (mixed; important negatives + adjusted view) - Revenue: consolidated revenue ~$1.4B, +11% YoY. - Gross profit/margin: $119M gross profit, 9% gross margin (gross profit includes $122M depreciation and $27M stock-based compensation). - Automotive profitability: automotive gross profit loss of $62M (improved vs $92M loss YoY), driven by lower sales of regulatory credits (~$100M decrease) plus lower production volumes and higher depreciation/SBC. - Operating/EBITDA: Adjusted EBITDA loss $472M—management links the losses to scaling preparation for R2 + investment in autonomy roadmap. - Software & Services strength: $473M revenue (+49% YoY) and $181M gross profit; ~60% of segment revenue tied to VW joint venture; growth also from remarketing + parts/service.