* Q2 revenue rises 27% to $1.66 billion

* Software and services revenue climbs 37% to $515 million

* Company forecasts narrower adjusted core loss and lower

capex

By Akash Sriram

July 30 (Reuters) - Rivian Automotive ( RIVN ) beat

quarterly revenue estimates and raised annual delivery forecast

on Thursday, buoyed by optimism over the rollout of its

lower-priced R2 SUV and growth in its software business as it

expands beyond its premium lineup.

The results suggest that the electric-vehicle maker's

long-awaited push into the mass market has picked up pace. It

began customer deliveries of the Tesla Model Y rival

during the second quarter and improved its outlook for

deliveries, adjusted core profit and capital spending despite a

softer U.S. EV market.

Rivian said it hosted a record number of R2 demo drives

during the quarter, reflecting strong customer interest in the

vehicle.

"We've been very positively encouraged by the conversion

rate of reservations to orders for the Launch Edition. It is

meaningfully above our own internal projections," CEO RJ

Scaringe told Reuters.

The company will start to see positive gross margin on the

R2 vehicle in the back half of the year, he said.

Rivian's expansion into the lower-priced segment comes as

U.S. EV demand has slowed following the expiry of a federal

consumer tax credit in September last year.

Revenue rose 27% to $1.66 billion, topping analysts' average

estimate of about $1.51 billion, according to data compiled by

LSEG.

The company delivered 12,194 vehicles during the April-June

quarter, up from 10,661 a year earlier, while production

increased to 12,613 vehicles at its Normal, Illinois facility.

Rivian raised full-year delivery forecast to 65,000-70,000

vehicles from 62,000-67,000. It lowered planned capital spending

projection to between $1.7 billion and $1.8 billion, from $1.95

billion to $2.05 billion earlier, and expects a smaller adjusted

core loss.

Software and services revenue climbed 37% to $515 million,

with $308 million coming from Rivian's joint venture with

Volkswagen, showcasing the growing importance of

software alongside vehicle sales.

The EV maker is increasingly relying on software and

technology licensing to diversify revenue beyond vehicle sales.