Rivian's Deliveries Jumped 58%. Why Didn't Gross Profit Follow?

Rivian's Q3 deliveries surged 58% to 19,248 vehicles, but automotive gross profit deteriorated despite the sales increase. The decline was driven by R2 ramp-up costs (~$120M), reduced regulatory credit revenue ($81M vs $106M), and underutilized factory capacity. However, software & services gross profit grew to $256M, offsetting some losses. The company needs to demonstrate sustained profitability as production scales and launch costs ease.