BofA Comments on Rivian’s Q1 Earnings

Bank of America analyst John Murphy reiterated on May 7, 2025, an ‘Underperform’ rating on Rivian, with a $10 price target.

“RIVN reported 1Q:25 results above BofA and consensus estimates.

Specifically, adj. EBITDA of ($0.30bn) compared with BofAe at ($0.50bn) and consensus at ($0.55bn).

Revenue of $1.24bn was above BofAe of $0.97bn.

Gross margin was 17%, better than BofAe of -8%.

This was largely due to higher regulatory credits ($157mm) and higher Software and Services revenue ($318mm). Recall that Software and Services revenue includes the recognition of payments from VW to fund the JV.

These payments and performance obligations recognized were $167mm in 1Q.

RIVN’s deliveries of 8,640 vehicles in 1Q:25 were down sequentially from 14,183 in 4Q:24, and down 36% YoY from 13,588 in 1Q:24.

RIVN produced 14,611 vehicles in the quarter, a 15% QoQ increase from the 12,727 vehicles produced in 4Q:24.”

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