Rivian lowers annual deliveries forecast as tax credit expiry fans industry gloom

Core Viewpoint - Rivian Automotive has lowered its annual delivery forecast midpoint due to the expiration of federal tax credits, leading to a decline in its stock price by over 3.3% [1] Company Summary - Rivian has narrowed its annual delivery forecast to between 41,500 and 43,500 vehicles, which is 500 vehicles lower than its previous forecast range of 40,000 to 46,000 [3] - The company reported a delivery of 13,201 vehicles in the third quarter, exceeding analysts' estimates of 12,690 vehicles [3] Industry Summary - The electric vehicle (EV) industry is facing a challenging outlook following the U.S. Congress's decision to abolish a $7,500 tax credit on leasing, which is expected to lead to a decline in EV sales and leasing [2] - The expiration of consumer tax credits and the imposition of high tariffs on auto parts have increased manufacturing costs and compressed margins for EV makers [4] - Rising vehicle costs may negatively impact Rivian's margins as the company aims to enhance profitability ahead of the launch of its more affordable R2 SUVs next year [5]