Rivian Automotive has revised its 2025 projections for vehicle deliveries and capital expenditures, a move influenced by the tariffs imposed during the Trump administration. Nonetheless, the company remains steadfast in its earnings outlook for the current year.
The electric vehicle manufacturer acknowledged its vulnerability to the broader global trade and economic climate, even as it continues to produce all trucks and SUVs in its Illinois facility.
In a letter to shareholders released on Tuesday, Rivian highlighted the considerable uncertainty present in the global economy, particularly concerning changes in trade regulations, policies, tariffs, and their subsequent effects on consumer sentiment and demand.
The updated guidance from Rivian indicates a delivery forecast of 40,000 to 46,000 units, a decrease from the previous projection of 46,000 to 51,000 units. Additionally, the anticipated capital expenditures have increased to a range of $1.8 billion to $1.9 billion, up from the prior estimate of $1.6 billion to $1.7 billion.
The company reiterated its goal of achieving a “modest positive gross profit” by the end of the year, along with projected adjusted losses of $1.7 billion to $1.9 billion before interest, taxes, depreciation, and amortization, following first-quarter results that exceeded Wall Street’s expectations.
In the first quarter, Rivian’s performance is compared against average estimates from LSEG, showing:
- Loss per share: 41 cents, against an anticipated loss of 76 cents
- Revenue: $1.24 billion, surpassing the expected $1.01 billion
Remarkably, the automaker recorded its second consecutive quarter of gross profit in the first quarter, which unlocked an anticipated $1 billion investment from Volkswagen Group as part of their strategic partnership involving a joint venture — Rivian and VW Group Technology LLC.
This joint venture was previously unveiled as part of a $5.8 billion deal, which encompasses financial support for Rivian and grants VW access to the electric vehicle maker’s software and electrical infrastructure.
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