Rivian earnings: EV maker cuts delivery guidance because of Trump's tariffs and trade wars

Core Viewpoint - Rivian is expected to deliver fewer electric vehicles (EVs) this year than previously forecasted, primarily due to the impact of President Trump's tariffs and regulatory changes, reflecting broader challenges faced by the automotive industry under the current administration [1][3]. Delivery and Production Forecast - Rivian now anticipates delivering between 40,000 and 46,000 EVs by the end of 2025, a reduction from the earlier estimate of 46,000 to 51,000 vehicles for this year [2]. - Delivering fewer than 46,000 EVs would mark a setback for Rivian, which has already been experiencing stagnant volume growth, having delivered 51,579 vehicles in 2024 and 50,122 in 2023 [5]. Financial Performance - In the first quarter of 2025, Rivian generated a gross profit of $206 million from 8,640 deliveries, marking the second consecutive quarter of gross profit [6]. - Despite the gross profit, Rivian reported a net income loss of $541 million for the quarter, an improvement from a loss of $1.4 billion in the same period the previous year [7]. Revenue Insights - Automotive revenue decreased to $922 million from $1.12 billion in the first quarter of 2024, although total revenues saw a slight year-over-year increase due to a significant rise in software and services revenue [9]. - Software and services revenue reached $318 million in the first quarter of 2025, nearly a fourfold increase from $88 million in the same period last year, attributed to advancements in vehicle electrical architecture and software development services [9]. Capital Expenditure Guidance - Rivian raised its capital expenditure guidance to between $1.8 billion and $1.9 billion, up from the previous guidance of $1.6 billion to $1.7 billion, due to anticipated impacts from tariffs [2]. Industry Context - Rivian's earnings report follows similar actions from Ford and General Motors, both of which withdrew their guidance for the year due to economic uncertainties linked to Trump's tariffs, with Ford estimating an additional $2.5 billion in costs and GM around $5 billion [3]. - Rivian has previously warned that changes in government policies and a challenging demand environment could threaten vehicle demand, particularly if the federal tax credit for EVs is eliminated [4].