Is Rivian Stock a buy Amid President Trump's Tariffs?

Core Insights - Rivian has established itself as a leading U.S.-based electric vehicle company, achieving high owner satisfaction and gross profitability in the last two quarters, with new models in development [1][2] Group 1: Tariff Impact - Rivian is affected by tariffs, which are increasing capital expenditures and impacting vehicle production [4] - The company has revised its vehicle delivery guidance for the year down to 40,000-46,000 vehicles from a previous estimate of 46,000-51,000 due to evolving trade regulations [5] - Capital expenditure guidance has been raised to $1.8 billion-$1.9 billion from $1.6 billion-$1.7 billion, with an expected increase in costs of a couple thousand dollars per vehicle due to tariffs [6][7] Group 2: Economic Concerns - The current economic landscape presents significant uncertainty, with a contraction in the U.S. economy and fears of a potential recession [10] - A survey indicated that 60% of CFOs expect a recession by year-end, with 95% stating tariffs hinder decision-making [10] - An economic slowdown could negatively impact vehicle sales, particularly for EVs, which are generally more expensive, with the average transaction price for an EV at $59,200, up 7% year-over-year [11] Group 3: Future Outlook - Rivian has plans for more affordable vehicles, the R2 and R3, which could enhance market share, but their launch coincides with economic uncertainty and ongoing tariffs [12] - While there is long-term potential for Rivian, the current situation may extend the timeline for achieving success [13]