Rivian adjusts 2025 outlook amid tariff pressure despite strong Q1 Performance
Shreeaa Rathi | TIMESOFINDIA.COM | May 06, 2025, 19:38 IST
( Image credit : TIL Creatives, TOIGLOBAL )
Rivian Automotive kicked off 2025 on a high note with impressive quarterly results, surpassing profit forecasts and minimizing losses. Yet, the company will fall short in vehicle deliveries, and increased spending from tariffs looms on the horizon. On a positive note, Volkswagen's investment in Rivian signals strong backing, with an economical SUV model expected in 2026.
Rivian Automotive delivered better-than-expected results in the first quarter of 2025, reaffirming its financial targets for the year. However, the electric vehicle (EV) maker revised its delivery forecasts and increased capital expenditure plans, citing mounting tariff pressures and global economic uncertainty.
The California-based automaker reported a narrower loss per share of 41 cents, significantly beating Wall Street’s estimate of 76 cents. Revenue surged to $1.24 billion, outperforming the expected $1.01 billion, marking another milestone in Rivian’s pursuit of profitability.
Still, the company tempered expectations for 2025 deliveries, lowering its target to between 40,000 and 46,000 vehicles—down from the previous range of 46,000 to 51,000. Capital expenditures are now expected to reach between $1.8 billion and $1.9 billion, up from the earlier guidance of $1.6 billion to $1.7 billion.
In its letter to shareholders, Rivian highlighted the impact of President Donald Trump’s renewed tariffs, particularly the 25% duty on auto parts not complying with the U.S.-Mexico-Canada Agreement. Chief Financial Officer Claire McDonough acknowledged the increased costs, estimating that tariffs will add several thousand dollars per vehicle.
Despite these challenges, Rivian reconfirmed its plan to achieve a modest positive gross profit this year. The company expects to post adjusted EBITDA losses between $1.7 billion and $1.9 billion.
Notably, Rivian recorded its second consecutive quarter of gross profit, totaling $206 million—up from $170 million in the previous quarter. This performance helped unlock a $1 billion investment from Volkswagen Group, part of a $5.8 billion deal that also includes a joint venture named Rivian and VW Group Technology LLC. This collaboration will leverage Rivian’s proprietary software and electric architecture.
Production for the first quarter totaled 14,611 vehicles, including delivery vans and R1 SUVs and pickup trucks. Of those, 8,640 units were delivered. While the company anticipates reduced production in the latter half of the year due to a month-long factory retooling in Illinois, it remains optimistic about the launch of its new R2 SUV—a smaller, more affordable $45,000 model expected in early 2026.
Rivian ended the quarter with $8.5 billion in liquidity, including $7.2 billion in cash, equivalents, and short-term investments. A surge in software and services revenue, rising to $318 million from $88 million a year earlier, and $157 million in automotive regulatory credit sales also contributed to the strong quarterly results.
On an unadjusted basis, the company trimmed its net loss to $541 million, a significant improvement from $1.5 billion a year ago and $743 million in the previous quarter.
Rivian’s performance stands in contrast to competitor Lucid Group, which reported mixed Q1 results. Lucid reconfirmed its 2025 production goal of around 20,000 vehicles, capital expenditures of $1.4 billion, and posted a loss of 20 cents per share versus an expected 23 cents, with revenue slightly below expectations at $235 million.
As Rivian navigates evolving trade policies and readies for its next-generation vehicle launch, its latest financials show resilience and strategic adaptability—key attributes in the increasingly competitive EV market.
Would you like help drafting a follow-up piece on how Rivian’s R2 could reshape the mid-tier EV market?
The California-based automaker reported a narrower loss per share of 41 cents, significantly beating Wall Street’s estimate of 76 cents. Revenue surged to $1.24 billion, outperforming the expected $1.01 billion, marking another milestone in Rivian’s pursuit of profitability.
Still, the company tempered expectations for 2025 deliveries, lowering its target to between 40,000 and 46,000 vehicles—down from the previous range of 46,000 to 51,000. Capital expenditures are now expected to reach between $1.8 billion and $1.9 billion, up from the earlier guidance of $1.6 billion to $1.7 billion.
In its letter to shareholders, Rivian highlighted the impact of President Donald Trump’s renewed tariffs, particularly the 25% duty on auto parts not complying with the U.S.-Mexico-Canada Agreement. Chief Financial Officer Claire McDonough acknowledged the increased costs, estimating that tariffs will add several thousand dollars per vehicle.
Despite these challenges, Rivian reconfirmed its plan to achieve a modest positive gross profit this year. The company expects to post adjusted EBITDA losses between $1.7 billion and $1.9 billion.
Notably, Rivian recorded its second consecutive quarter of gross profit, totaling $206 million—up from $170 million in the previous quarter. This performance helped unlock a $1 billion investment from Volkswagen Group, part of a $5.8 billion deal that also includes a joint venture named Rivian and VW Group Technology LLC. This collaboration will leverage Rivian’s proprietary software and electric architecture.
Production for the first quarter totaled 14,611 vehicles, including delivery vans and R1 SUVs and pickup trucks. Of those, 8,640 units were delivered. While the company anticipates reduced production in the latter half of the year due to a month-long factory retooling in Illinois, it remains optimistic about the launch of its new R2 SUV—a smaller, more affordable $45,000 model expected in early 2026.
Rivian ended the quarter with $8.5 billion in liquidity, including $7.2 billion in cash, equivalents, and short-term investments. A surge in software and services revenue, rising to $318 million from $88 million a year earlier, and $157 million in automotive regulatory credit sales also contributed to the strong quarterly results.
On an unadjusted basis, the company trimmed its net loss to $541 million, a significant improvement from $1.5 billion a year ago and $743 million in the previous quarter.
Rivian’s performance stands in contrast to competitor Lucid Group, which reported mixed Q1 results. Lucid reconfirmed its 2025 production goal of around 20,000 vehicles, capital expenditures of $1.4 billion, and posted a loss of 20 cents per share versus an expected 23 cents, with revenue slightly below expectations at $235 million.
As Rivian navigates evolving trade policies and readies for its next-generation vehicle launch, its latest financials show resilience and strategic adaptability—key attributes in the increasingly competitive EV market.
Would you like help drafting a follow-up piece on how Rivian’s R2 could reshape the mid-tier EV market?