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Rivian earnings: EV maker cuts delivery guidance because of Trump’s tariffs and trade wars
Rivian said in its earnings report Tuesday it will likely deliver fewer vehicles this year than previously forecasted due to President Trump’s tariffs and other regulatory changes, making it the latest automaker to be affected by the new administration’s chaotic economic policies.
The company said Tuesday it expects to deliver between 40,000 and 46,000 EVs by the end of 2025. That’s despite Rivian saying one month ago that it was still holding to its estimate of delivering 46,000 to 51,000 vehicles across this year. Rivian raised its capital expenditure guidance to between $1.8 billion and $1.9 billion due to the expected impact from tariffs. The company’s previous capex guidance was between $1.6 billion to $1.7 billion, according to its 2024 shareholder letter.
Rivian’s earnings announcement comes days after both Ford and General Motors pulled their guidance for the year, citing economic uncertainty related to Trump’s tariffs. Ford said it expects the tariffs to add $2.5 billion in costs across 2025, while GM told investors it expects the impact to be around $5 billion.
Rivian warned investors in February that “changes to government policies and regulations, and a challenging demand environment” could threaten demand for its vehicles. Things could only get more challenging if the Trump administration, Congress, or both decide to kill the $7,500 federal tax credit for EVs.
Delivering fewer than 46,000 EVs would be a step back for the electric automaker, as the company was already tracking for its third straight year with no volume growth before the guidance cut. Rivian delivered 51,579 vehicles in 2024 and 50,122 in 2023. The company’s more affordable R2 SUV, which it expects to deliver in greater numbers, won’t come until 2026.
The company said Tuesday that it was able to generate $206 million of gross profit in the first quarter of 2025 on 8,640 deliveries. It was the second straight quarter the company was able to generate gross profit. This first-quarter gross profit was particularly important because it met a contractual milestone that unlocked about $1 billion in funding from Volkswagen Group as part of a joint venture with the German automaker.
While gross profit may look good on the balance sheet, net income provides a more realistic view of costs. The company reported a net income loss of $541 million in the quarter, a considerable improvement from the $1.4 billion in losses in the same year-ago period.
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Automotive revenue shrank to $922 million from $1.12 billion in the first quarter of 2024, although total revenues were up slightly year-over-year thanks to a boost from sales of the company’s software and services.
Total software and services revenues for the first quarter of 2025 were $318 million, nearly a fourfold increase from the $88 million in the same period last year. Rivian credited the increase to its new vehicle electrical architecture and software development services, increased remarketing sales, and an increase in repair and maintenance services.
This article was first published at 4:06 p.m. ET. It has since been updated with information from Rivian’s earnings call.
Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.
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