Rivian CEO says uncertainty over tariffs and elimination of EV credits contributed to carmaker's lower guidance

Core Viewpoint - Rivian reported strong fourth-quarter earnings but provided weak guidance for 2025 due to uncertainties surrounding tariffs and the elimination of EV credits [1][2][3] Financial Performance - The company exceeded Wall Street's expectations with a gross profit of $170 million for the fourth quarter, outperforming forecasts in earnings per share and revenue [2] - However, the 2025 guidance projected vehicle deliveries between 46,000 and 51,000, which is below the 2024 total deliveries of 52,000 EVs and misses Wall Street's estimate of about 55,000 vehicles [3] Industry Challenges - CEO RJ Scaringe highlighted that tariffs and the removal of consumer incentives like the tax credit for new EVs would have similar negative effects on pricing and consumer adoption of electric vehicles [2][6] - President Trump's proposed auto tariffs of around 25$2,700, further complicating the market landscape [5] Strategic Focus - The company is concentrating on controllable factors such as cost efficiency, software improvements, and the production of the R2 model, which is set to launch in the first half of next year [7] - Scaringe emphasized the need for resilience in response to potential changes in trade policy and consumer credits [7]