Rivian cuts delivery guidance because of Trump’s tariffs and trade wars

Rivian says it will likely deliver fewer vehicles this year than previously forecasted due to President Trump’s tariffs and other regulatory changes, making it the latest automaker to be affected by the new administration’s chaotic economic policies.

The company said Tuesday it expects to deliver between 40,000 and 46,000 EVs by the end of 2025. That’s despite Rivian saying one month ago that it was still holding to its estimate of delivering 46,000 to 51,000 vehicles across this year.

Rivian’s announcement comes days after both Ford and General Motors pulled their guidance for the year, citing economic uncertainty related to Trump’s tariffs. Ford said it expects the tariffs to add $2.5 billion in costs across 2025, while GM told investors it expects the impact to be around $5 billion.

Rivian warned investors in February that “changes to government policies and regulations, and a challenging demand environment” could threaten demand for its vehicles. Things could only get more challenging if the Trump administration, Congress, or both decide to kill the $7,500 federal tax credit for EVs.

Delivering fewer than 46,000 EVs would be a step back for the electric automaker, as the company was already tracking for its third straight year with no volume growth before the guidance cut. Rivian delivered 51,579 vehicles in 2024 and 50,122 in 2023. The company’s more affordable R2 SUV, which it expects to deliver in greater numbers, won’t come until 2026.

The company said Tuesday that it was able to generate $206 million of gross profit in the first quarter of 2025 on 8,640 deliveries. It was the second straight quarter the company was able to generate gross profit.

While gross profit may look good on the balance sheet, net income provides a more realistic view of costs. The company reported lost more than $540 million in net income in the quarter. Automotive revenue shrank to $922 million from $1.12 billion in the first quarter of 2024, although total revenues were up slightly year-over-year thanks to a boost from sales of the company’s software and services.