Rivian has lowered its vehicle delivery forecast for 2025, attributing the revision to the financial strain caused by tariffs introduced during the Trump administration and ongoing regulatory uncertainties.
The electric vehicle manufacturer now expects to deliver between 40,000 and 46,000 vehicles this year, down from its previous estimate of 46,000 to 51,000 units. Alongside this adjustment, Rivian has increased its capital expenditure guidance to between $1.8 billion and $1.9 billion, up from an earlier range of $1.6 billion to $1.7 billion, reflecting the additional costs imposed by tariffs on automotive components.
Despite these headwinds, Rivian reported encouraging results for the first quarter of 2025, surpassing market expectations. The company achieved a gross profit of $206 million, marking its second consecutive quarter of gross profitability and its highest figure to date. This achievement triggered the release of approximately $1 billion in additional funding from Volkswagen Group, as part of a joint venture designed to leverage Rivian’s expertise in vehicle electrical architecture and software development. This investment is anticipated to be finalised by the end of June 2025.
During the quarter, Rivian produced 14,611 vehicles and delivered 8,640, in line with management’s guidance. Total revenue reached $1.24 billion, exceeding analyst forecasts of around $1 billion. A crucial factor in this revenue growth was the nearly fourfold increase in software and services income, which rose to $318 million from $88 million in the same period last year. This surge was driven by Rivian’s new vehicle electrical architecture, software development services, remarketing sales, and expanded repair and maintenance offerings.
While gross profit showed improvement, net income remained negative, with a loss of $541 million for the quarter. However, this represented a substantial improvement compared to the $1.4 billion loss recorded in the first quarter of the previous year. The adjusted EBITDA loss was reported at $329 million, showing ongoing investments in the development of the forthcoming R2 model and expansion of sales and service infrastructure.
“This quarter we hit our second consecutive gross profit and our highest gross profit to date at $206 million. We have continued to make significant progress on R2, including vehicle validation builds underway and our Normal, Illinois manufacturing facility expansion on track,” Rivian CEO RJ Scaringe stated. The R2 SUV, expected to be a more affordable model, remains on schedule for production to begin in the first half of 2026.
The downward revision in delivery guidance represents a setback for Rivian, which had already been experiencing a plateau in volume growth, having delivered 51,579 vehicles in 2024 and 50,122 in 2023. The company’s outlook is further complicated by potential changes to federal incentives, such as the $7,500 electric vehicle tax credit, which, if reduced or eliminated, could dampen consumer demand.
Meanwhile, Rivian’s liquidity position remains strong, with cash, cash equivalents, and short-term investments totalling approximately $7.2 billion as of the end of March 2025. Additional capital is expected from the Volkswagen joint venture, a Department of Energy loan supporting the Georgia manufacturing facility, and an amended asset-based lending facility, providing the company with substantial financial flexibility amid market uncertainties.
The wider electric vehicle sector continues to face challenges from trade tensions and supply chain disruptions. Rivian’s experience mirrors that of other major automakers such as Ford and General Motors, both of which have also revised their forecasts due to tariff-related cost pressures. Ford anticipates tariffs will add $2.5 billion in expenses for 2025, while General Motors expects an impact of around $5 billion.