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4mo ago

Rivian Revises 2025 Delivery Targets and Spending Plans as Tariffs Drive Costs Higher

The EV maker lowers its delivery guidance to 40,000–46,000 vehicles and raises capital expenditure projections to $1.8–$1.9 billion, citing challenges from U.S. trade policies.

Workers assemble second-generation R1 vehicles at electric auto maker Rivian's manufacturing facility in Normal, Illinois, U.S. June 21, 2024. REUTERS/Joel Angel Juarez/File Photo
New Ford Edges sit on a production line as Ford Motor Company celebrates the global production start of the 2015 Ford Edge at the Ford Assembly Plant in Oakville, Ont., on Feb. 26, 2015. The Canadian and Mexican governments are pressing the U.S. to explain its auto proposal at the current round of NAFTA talks.
A Lucid Motors facility is pictured in Costa Mesa, California, U.S.,November 1, 2023. REUTERS/Mike Blake/File Photo
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Overview

  • Rivian cut its 2025 delivery forecast from 46,000–51,000 vehicles to 40,000–46,000 vehicles, attributing the revision to U.S. tariffs and global trade uncertainties.
  • The company increased its capital expenditure guidance to $1.8–$1.9 billion, up from $1.6–$1.7 billion, due to the anticipated cost impacts of tariffs on imported components like batteries.
  • Rivian reported its second consecutive quarter of positive gross profit, achieving $206 million in Q1 2025, which unlocked a $1 billion investment from its Volkswagen joint venture.
  • To mitigate tariff-related expenses, Rivian announced a $120 million investment in a supplier park near its Normal, Illinois plant, aimed at reducing logistics and warehousing costs.
  • CEO RJ Scaringe warned that tariffs could add approximately $2,000 per vehicle in costs, with analysts projecting potential increases as high as $13,000 for certain components.