Rivian cuts 2025 delivery target, ups expected spending amid tariff pressures

Rivian Automotive on Tuesday beat Wall Road’s expectations for the primary quarter and confirmed its 2025 earnings targets, however negatively adjusted its 2025 targets for automobile deliveries and capital spending amid President Donald Trump’s tariffs.

The all-electric automobile producer mentioned it’s “not resistant to the impacts of the worldwide commerce and financial surroundings,” regardless of producing all of its vans and SUVs within the U.S. at a manufacturing unit in Illinois.

“The present international financial panorama presents important uncertainty, significantly concerning evolving commerce regulation, insurance policies, tariffs, and the general influence these things could have on client sentiment and demand,” the corporate mentioned in its quarterly letter to shareholders.

Rivian Chief Monetary Officer Claire McDonough mentioned the corporate is expected to incur “a pair thousand {dollars}” in further bills per automobile on account of tariffs, which embody a 25% tariff on imported auto elements that don’t adjust to the U.S.-Mexico-Canada commerce settlement.

Rivian’s new steerage contains deliveries of between 40,000 items and 46,000 items, down from a variety of 46,000 items to 51,000 items, and capital expenditures of between $1.8 billion and $1.9 billion, up from earlier steerage of between $1.6 billion and $1.7 billion.

Rivian reconfirmed plans to attain a “modest constructive gross revenue” this yr, in addition to $1.7 billion to $1.9 billion in losses on an adjusted foundation earlier than curiosity, taxes, depreciation and amortization after its first-quarter outcomes topped Wall Road’s expectations.

Here is how the corporate carried out within the first quarter, in contrast with common estimates compiled by LSEG:

• Loss per share: 41 cents vs. a lack of 76 cents expected
• Income: $1.24 billion vs. $1.01 billion expected

Notably, the automaker achieved its second consecutive quarter of gross revenue throughout the first quarter, unlocking an expected $1 billion from Volkswagen Group as a part of its funding in Rivian following the formation of their three way partnership Rivian and VW Group Know-how LLC.

Rivian recorded a gross revenue, which incorporates manufacturing and gross sales however doesn’t think about different bills, of $206 million throughout the first quarter. That compares with $170 million throughout the fourth quarter.

The three way partnership was introduced final yr as a part of a $5.8 billion deal that features funding for Rivian and VW using the electrical automobile maker’s software program and electrical structure.

Rivian mentioned it ended the primary quarter with $8.5 billion in liquidity, together with $7.2 billion in money, money equivalents and short-term investments.

The corporate’s first-quarter outcomes had been helped by a rise in gross sales of automotive regulatory credit of $157 million, or roughly half the $300 million expected for the total yr, in addition to a rise in software program and companies revenues of $318 million in contrast with $88 million a yr earlier.

On an unadjusted foundation, Rivian narrowed its losses to $541 million throughout the first quarter. That compares to roughly $1.5 billion a yr earlier and $743 million throughout the fourth quarter.

Rivian produced 14,611 of its electrical delivery vans and “R1” SUVs and pickup vans throughout the first quarter. It delivered 8,640 autos throughout that interval.

The automaker reconfirmed Tuesday that manufacturing is expected to be decrease throughout the second half of the yr as Rivian idles and retools its Illinois plant for roughly a month in preparation for its new “R2” product.

The smaller, $45,000 SUV is expected to enter manufacturing throughout the first half of subsequent yr. Rivian is banking on the less-expensive R2 to reinvigorate demand.

Rivian’s outcomes examine to EV rival Lucid Group, which reported blended first-quarter outcomes Tuesday, whereas reconfirming its 2025 manufacturing steerage of roughly 20,000 autos and capital expenditures of $1.4 billion.

Lucid reported a lack of 20 cents per share versus an expected lack of 23 cents, in response to LSEG estimates, and income of $235 million versus an expected $249 million.