Rivian's automotive gross profit improved by $299 million over the past year, about 3.5 times the $86 million gain in software and services, though the automotive business is still unprofitable on a gross basis. The article says the R2 production ramp-up could push automotive gross profit higher in coming quarters, while software and services earned a 42% gross margin in the second quarter. Pressure comes from regulatory credit sales, which totaled about $108 million in the second quarter and are expected to be considerably lower in the second half. Vehicle production rose nearly 57%, from 12,613 in the second quarter to 19,751 in the third, and a second R2 shift was added near the end of the quarter. The article notes that higher output alone won't guarantee better margins, so investors should focus on why automotive gross profit changes in the third-quarter report.
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