Rivian Automotive exceeded Wall Street expectations for the first quarter, yet it has adjusted its 2025 guidance for vehicle deliveries and capital expenditures due to challenges posed by tariffs. Despite producing all of its electric trucks and SUVs in the U.S. at its Illinois factory, Rivian acknowledged the uncertainties created by global trade dynamics, including tariffs, and the potential impact these factors could have on consumer demand. Chief Financial Officer Claire McDonough explained that the company anticipates additional costs per vehicle due to tariffs, including a 25% levy on certain auto parts that do not meet the U.S.-Mexico-Canada trade agreement.
As a result of these tariff-related expenses, Rivian has lowered its 2025 delivery forecast to a range of 40,000 to 46,000 units, down from an earlier range of 46,000 to 51,000. The company has also revised its capital expenditure guidance upwards, now projecting between $1.8 billion and $1.9 billion, up from $1.6 billion to $1.7 billion. Despite these adjustments, Rivian reaffirmed its aim to achieve a “modest positive gross profit” this year, along with a loss of $1.7 billion to $1.9 billion on an adjusted basis.
For the first quarter, Rivian reported a narrower loss per share of 41 cents, compared to the 76-cent loss that analysts had expected. Revenue came in at $1.24 billion, exceeding the forecast of $1.01 billion. The company also recorded a gross profit of $206 million, surpassing the $170 million from the previous quarter, aided by a joint venture with Volkswagen Group, which provided an expected $1 billion in funding.
Rivian finished the quarter with a healthy liquidity position of $8.5 billion, including $7.2 billion in cash and investments. Additionally, the company saw significant growth in revenue from automotive regulatory credits and its software and services segments. However, Rivian noted that its production would be lower in the second half of the year as the company retools its Illinois plant for the upcoming “R2” model, a more affordable $45,000 SUV set to begin production in the first half of next year. Rivian hopes that the R2 will help drive consumer demand moving forward.
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