Rivian Faces Delivery Setback Due to Tariffs and Regulatory Changes
Rivian recently announced in its earnings report a revision to its vehicle delivery forecast for the year, citing challenges posed by President Trump’s tariffs and other regulatory shifts. This development marks the latest instance of an automaker feeling the impact of the current administration’s economic policies.
The company now anticipates delivering between 40,000 and 46,000 electric vehicles (EVs) by the end of 2025, a downgrade from its previous estimate of 46,000 to 51,000 vehicles for this year. To account for the expected influence of tariffs, Rivian has raised its capital expenditure guidance to a range of $1.8 billion to $1.9 billion. This adjustment contrasts with the earlier guidance of $1.6 billion to $1.7 billion, as outlined in its 2024 shareholder letter.
Rivian’s earnings report comes on the heels of Ford and General Motors retracting their guidance for the year due to economic uncertainties stemming from Trump’s tariffs. Ford estimates that the tariffs will incur an additional $2.5 billion in costs in 2025, while GM foresees a potential impact of around $5 billion.
Earlier in February, Rivian had cautioned investors about potential threats to demand for its vehicles arising from shifts in government policies and regulations, along with a challenging demand environment. The company faces further obstacles if the $7,500 federal tax credit for EVs is discontinued by the Trump administration, Congress, or both.
With a projected delivery of less than 46,000 EVs, Rivian faces a setback in its growth trajectory following two consecutive years without volume expansion. In 2024, the company delivered 51,579 vehicles, while the figure stood at 50,122 in 2023. The introduction of the more affordable R2 SUV, expected to see higher delivery volumes, is slated for 2026.
Despite generating $206 million in gross profit in the first quarter of 2025 from 8,640 deliveries, Rivian reported a net income loss of $541 million, showing improvement from the $1.4 billion loss in the same period last year. The company’s ability to achieve gross profit milestone in the first quarter unlocked approximately $1 billion in funding from Volkswagen Group as part of a joint venture.
While automotive revenue declined to $922 million from $1.12 billion in the first quarter of 2024, overall revenues saw a slight increase year-over-year driven by software and services sales. Rivian’s software and services revenue reached $318 million in the first quarter, marking a substantial rise from $88 million in the corresponding period last year.
The surge in software and services revenue can be attributed to various factors, including the development of new vehicle electrical architecture and software services, enhanced remarketing sales, and an uptick in repair and maintenance services.
This article, originally published at 4:06 pm ET, has been updated with insights from Rivian’s earnings call.
