Rivian Lowers Delivery Forecast, Raises Spending Amid Tariff Costs

Rivian Automotive exceeded Wall Street Q1 expectations while maintaining its 2025 earnings targets but reduced delivery projections and increased capital spending because of President Donald Trump’s tariffs. The electric vehicle manufacturer now predicts 40,000 to 46,000 deliveries instead of its previous 46,000 to 51,000 target while expecting capital expenditures to range between $1.8 billion and $1.9 billion instead of $1.6 billion to $1.7 billion. The 25% import tariffs on parts result in additional costs of “a couple thousand dollars” for each vehicle produced at Illinois facilities. The company stated that global trade conditions generate market unpredictability which affects customer purchasing behavior. Rivian maintained its projection for a minimal gross profit margin while forecasting $1.7–$1.9 billion in adjusted losses. EV manufacturers face significant challenges from trade policies and economic changes despite operating within domestic borders.