Tesla Surges on AI, Rivian Struggles to Stay Afloat

"Tesla posted $22.39 billion in revenue with an automotive gross margin of 21.1%. Rivian delivered $1.381 billion while its automotive segment slipped to a $62 million gross loss. Same industry, very different chapters."

"FSD active subscriptions reached 1.28 million, up 51% year over year, lifting Services and Other revenue 42% to $3.745 billion. Deliveries grew a modest 6%, yet free cash flow more than doubled to $1.444 billion. Lower material costs and one-time warranty and tariff benefits did real work here."

"Deliveries hit 10,365 units, a 20% jump, but a $100 million drop in regulatory credit sales and a heavier mix of commercial vans dragged automotive revenue down 2%. The bright spot: Software and Services climbed 49% to $473 million, driven by the Volkswagen RV Tech joint venture."

"Tesla is pouring $1.95 billion per quarter into R&D, taping out its AI5 inference chip, prepping Optimus lines designed for 1 million robots per year, and running unsupervised Robotaxi rides in Dallas and Houston. Rivian's bet is narrower and more existential: get R2 down to about 50% of the R1 bill of materials, scale the $4.5 billion DOE-backed Georgia plant, and turn the Uber robotaxi deal worth up to $1.25 billion into real volume."

Tesla reported $22.39 billion in revenue with a 21.1% automotive gross margin. Free cash flow rose to $1.444 billion as services and other revenue increased 42% to $3.745 billion, supported by FSD active subscriptions reaching 1.28 million. Deliveries increased 6% and lower material costs plus one-time warranty and tariff benefits contributed. Rivian delivered $1.381 billion with a $62 million automotive gross loss. Deliveries rose 20% to 10,365 units, but automotive revenue fell 2% due to a $100 million decline in regulatory credit sales and a heavier commercial van mix. Software and services grew 49% to $473 million, supported by the Volkswagen RV Tech joint venture.

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